U.S. President-elect Donald Trump has issued a stark warning to the European Union, stating that the bloc could face steep tariffs if it does not address its trade deficit with the United States by significantly increasing oil and gas imports.

In a post on Truth Social, Trump said, “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 has long criticized countries with trade surpluses with the U.S. and has pledged to impose tariffs on major trading partners, including Canada, Mexico, and China. Europe, he argues, has benefited from a longstanding trade surplus with the U.S. and must now “pay a heavy price.”

However, industry experts note that European oil and gas purchases are dictated by market forces rather than government intervention. Refineries, owned by private oil majors and trading houses, typically prioritize cost-efficiency and price competitiveness when sourcing resources.

As Trump prepares to take office on January 20, his aggressive trade policies are poised to redefine the U.S. relationship with its trading partners. The EU may soon face tough decisions on balancing economic ties with the United States against the realities of global energy markets.

Credit: CNBC