President-elect Donald Trump issued a stark warning to the European Union on Friday, threatening to impose tariffs unless the EU increases its purchases of American oil and gas to address the trade imbalance.

Trump emphasized this demand on Truth Social, highlighting the ‘tremendous deficit’ with the U.S., which stood at $202.5 billion in 2022.

“I told the European Union that they must make up their tremendous deficit with the United States by the large scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way!!!” Trump wrote.

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The European Union has expressed readiness to discuss strengthening energy relations with the U.S., noting their commitment to diversifying energy sources away from Russian imports.

The EU & US have deeply integrated economies, with overall balanced trade/investment. We’re ready to discuss with President-elect Donald Trump how we can further strengthen an already strong relationship, including by discussing our common energy sector interests,” spokesperson Olaf Gill wrote on X on Friday.

Trump’s threats are consistent with his broader strategy of using tariffs as leverage to bolster American economic interests and manufacturing. This move aligns with his campaign promises to ramp up fossil fuel production and reduce trade deficits.

The EU, already a significant importer of US LNG, is considering these terms amid existing geopolitical tensions and its efforts to replace Russian energy supplies.

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