Trump poses threat of tariffs if Europe doesn't increase purchases of American oil and gas resources.
Trump poses threat of tariffs if Europe doesn't increase purchases of American oil and gas resources.
I revealed to the European Union that they need to rectify their substantial financial discrepancy with the USA by significantly purchasing our oil and gas in vast quantities. Otherwise, it's TARIFFS, plain and simple!!! I put this out there on Truth Social, which is managed by my media enterprise.
Trump has persistently employed the tariff threat as a bargaining tool with countries he perceives as mistreating the USA. In November, Trump threatened to impose a mammoth 25% tariff on all goods imported from Canada and Mexico unless those nations tightened up their perceived lax drug and border regulations.
The looming prospect of escalating tariffs, or even a trade war, serves to further complicate and sow doubt among business leaders in both the USA and abroad. Some analysts have cautioned that even the threat of tariffs can reduce investment and job creation, as well as impact stock prices.
During his presidential campaign, Trump frequently vowed to boost America's fossil fuel production––a feat already accomplished, given that the USA is the top oil producer worldwide. He has pledged to ease restrictions on new drilling and hydraulic fracturing, while his push for Europe to buy more energy from the USA aligns with his past promises.
However, the USA currently holds the title as Europe's largest exporter of liquefied natural gas, as gleaned from data provided by the US Energy Information Administration. Europe has largely become independent from Russian natural gas thanks to the ongoing conflict with Ukraine, and is thus actively looking to make up some of that deficit by importing gas from the USA.
Nevertheless, Europe exports significantly more goods to the USA than it imports from there. Although trade imbalances are common––notably, Americans have a lesser demand for European goods than they do for items hailing from China, Canada, and Mexico––Trump has incessantly attacked such imbalances as evidence of unjust trade practices.
European stock prices plummeted dramatically on Friday, while US stock prices dipped slightly in pre-market trading. Trump's tariff threat adds yet another layer of unease to a market that is already fatigued by the lack of progress in combating inflation. A spike in tariffs could rekindle a worldwide inflation crisis, economists have warned.
The business sector in both the USA and Europe might face decreased investment and job creation due to the threat of tariffs, as some analysts suggest. Trump's push for Europe to increase its oil and gas purchases from the USA aligns with his past promises, given the USA's role as Europe's largest exporter of liquefied natural gas.