Trump says EU should buy US oil and gas in trade ultimatum

US President-elect Donald Trump said on Friday that he had told the European Union that it must reduce the trade gap with the United States by purchasing oil and gas or face tariffs.

“I told the European Union that they have to make up their huge deficit with the United States by buying large amounts of our oil and gas. Otherwise, it’s tariffs all the way,” Trump said on his platform, Truth Social, shortly after 1 a.m. at.

according to American numbersThe trade deficit in goods and services with the European Union reached $131.3 billion in 2022.

A senior EU diplomat, who requested to remain anonymous due to the sensitivity of the topic, told CNBC’s Silvia Amaro that they were not surprised by Trump’s comment on Friday and that energy was a “good option” to buy more US goods.

Another EU official, who also did not want to be named for the same reason, told Amaro that German Chancellor Olaf Scholz spoke with Trump last night.

This comment comes after the heads of state of the European Union held their last meeting of the year on Thursday, during which the issue of European-American relations was discussed.

European Council President Antonio Costa said after the meeting, “The message is clear: the European Union is committed to continuing to work with the United States, in a practical way, to strengthen transatlantic relations.”

Trump threatened to impose comprehensive tariffs on US trading partners Including China, Mexico and Canada A defining part of his presidential campaign — and he’s continued the narrative as he prepares to enter office, though Economists’ warning Domestic inflation risks

Analysts say there is a great deal of uncertainty about the extent of tariffs Trump will be willing — or able — to pursue, and the extent to which his rhetoric is a springboard for deal-making.

Enrico Letta, former Prime Minister of Italy and dean of the IE School of Politics, Economics and Global Affairs, told CNBC’s Squawk Box Europe on Friday that the European Union needs to prepare to respond to Trump’s threat.

“I think it is a transactional approach, and we have to respond to this transactional approach,” Letta said. “(Trump) is mixing energy, tariffs on goods, manufacturing, etc. I think that is not true because the two issues are completely different.”

“If Trump proposes the deal — such an asymmetric deal on unrelated topics — I think we should do the same.”

He added: “Given that the most mixed part is the relationship on the financial side, we have to start thinking that responding on the financial side might be a solution.”

The United States was the largest recipient of EU goods in 2023, representing… 19.7% of its exports.

The European Union has already indicated that it expects to buy more American energy in the coming years. Last month, European Commission President Ursula von der Leyen He told reporters Replacing Russian LNG imports with US quantities would be cheaper, and the European Union will look to engage and negotiate this issue when Trump takes office in 2025.

CNBC has contacted the European Commission for comment on Trump’s statements.