US President-elect Donald Trump on Friday threatened the European Union with tariffs if the EU does not reduce its “huge” trade gap with Washington through oil and gas purchases.
“I told the European Union that they must finance their massive deficit with the United States by massive purchases of our oil and gas,” Trump said in a post on his Truth social platform early Friday.
“Otherwise, it’s a tariff all the way!!!”
According to US data, goods imports from the EU stood at $553.3 billion in 2022, while its exports to the bloc stood at $350.8 billion.
This increased the US goods trade deficit with the EU to $202.5 billion that year.
Trump, who took office in January, has threatened to impose sweeping tariffs on US trading partners including Canada, Mexico and China, which could hit the global economy.
Accusing Canada and Mexico of allowing a flood of illegal drugs and undocumented immigrants to the United States, he announced import tariffs of 25 percent, compared with a minimum of 10 percent against Washington’s Asia-Pacific rival China. Also vowed to impose charges.
Canada, Mexico and China are the US’s three largest trading partners.
Earlier this month, the EU struck a major trade deal with four South American countries – Argentina, Brazil, Paraguay and Uruguay – that aims to create a 700 million customer free trade zone.
EU Commission chief Ursula von der Leyen said the agreement would build trade bridges as “strong winds are blowing in the opposite direction, towards isolation and fragmentation” – comments indicative of Trump’s threats to raise massive tariffs. is seen as.
Some analysts have said Trump’s tariff threat may be foolish, or an early opportunity to gain leverage in future trade negotiations once he takes office.
But Trump has consistently insisted that “appropriately used” tariffs would be positive for the US economy.
“Our country is losing to everybody right now,” he told reporters at his Florida home earlier this week. “Tariffs will make our country prosperous.”
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
