EU Must Buy US Energy to Get Tariff Relief: Trump

The president rejected the EU’s proposal for “zero-zero” tariffs on automobiles and industrial products.

US President Donald Trump said late April 7 that the European Union would need to buy $350 billion worth of American energy to secure relief from tariffs.

Trump had responded to European Commission President Ursula von der Leyen, who told a press conference in Brussels on Monday that the EU was ready to negotiate a “zero-zero” tariff agreement on industrial products.

A White House reporter asked if the offer was enough to return to a 20% import mission, Trump said: “No, it’s not.”

“The European Union has been very tough for many years. There’s a $350 billion (trade) deficit with the European Union, and it’s going away quickly,” Trump said. “And one of the ways that can go away easily and quickly is that they have to buy energy from us… they can buy it and we can knock off $350 billion in a week.”

On April 2, Trump announced a minimum 10% tariff on all trading partners, exceeding the collection of around 60 countries identified by the administration as “the worst criminal” in trade imbalances with the US. China was at the top of the list.

The EU bloc of 27 countries currently faces 25% import duties on steel, aluminum and automobiles, with 20% tariffs being put in since April 9th, kick-in with almost all other goods that correspond to countries that say almost all Trump’s goods are imposing high barriers to US imports.

On Monday evening, the committee proposed an initial retaliatory tariff of 25% over the range of US imports from dental floss to diamonds.

The list was shortened after pressure from member states, excluded bourbon, wine and dairy products from countries exported to major French and Italian wines and spirits after Trump threatened a 200% rebuttal with EU alcoholic drinks.

The block began collecting customs duties on April 15th, with a second tranche beginning a month later.

EU trade chief Maros Sefcovic said on Monday:

French Minister of Foreign Trade Laurent Saint-Martin said BLOCs could use the EU’s anti-strong device (ACI).

This allows the EU to target US services and restrict access to US companies’ public procurement tenders.

Irish Foreign Minister Simon Harris described the ACI as “very nuclear selection.”

Energy

The EU is already a major buyer of US energy. Trump has previously said he is determined to make the EU a bigger buyer of liquefied natural gas (LNG).

Last year he issued a warning to the EU, which threatened to threaten to impose tariffs on the bloc unless they buy enough American oil and gas to compensate for the trade deficit with the US.

“I told the European Union they must make up for the incredible deficit with the US through our massive purchases of oil and gas,” Trump wrote in a December 20 post on the True Society. “If not, it’s always customs duties!!!”

EU leaders prioritize the renewable energy first energy approach, along with comprehensive legislation aimed at making the bloc the first climate neutral continent by 2050.

In 2024, the US maintained its position as a leading supplier of liquefied natural gas to Europe, importing 43.8 million tonnes.

That amount is expected to increase under Trump’s pledge to maximize US oil and natural gas production.

Reuters, Tom Ojimek and Guy Burchard contributed to this report.