Trump's conditions: If Europe buys $350 billion of U.S. Energy, he may consider lowering tariffs
According to reports, Trump rejected the EU's proposal for "zero-for-zero" tariffs on cars and industrial goods, and demanded that the latter exchange tariff reductions for "purchasing $350 billion of U.S. energy." Analysts believe this could make U.S. LNG producers the biggest beneficiaries
Trump puts pressure on the EU again: $350 billion in energy for tariff reductions, zero-tariff proposal flatly rejected.
According to media reports, at a White House press conference on Monday evening, U.S. President Trump made it clear that the EU must commit to purchasing $350 billion worth of U.S. energy in order to receive tariff reductions from the U.S.—directly rejecting the EU's previous proposal for zero tariffs on cars and industrial goods.
Trump stated:
“We have a $350 billion trade deficit with the EU, and one way to eliminate this deficit is for them to buy energy from us... They must purchase and commit to buying a corresponding amount of energy.”
According to Xinhua News Agency, the EU's Foreign Affairs Council held a ministerial meeting in Luxembourg on the 7th. After the meeting, Maroš Šefčovič, the EU Commissioner responsible for trade and economic security, stated that the EU still hopes to promote the U.S. to lift tariffs through dialogue and negotiation, but if negotiations on tariffs with the U.S. do not make progress, the EU will use all means to retaliate against the U.S.
According to CCTV News, Šefčovič stated that the EU's position is to consider all available options. The EU is ready to discuss zero-tariff measures, which would apply not only to cars but also to other industrial products.
U.S. LNG may become a bargaining chip
The idea of avoiding tariffs by purchasing U.S. energy is not new.
According to media reports, shortly after Trump's successful re-election campaign, EU Commission President Ursula von der Leyen proposed that more U.S. LNG (liquefied natural gas) could be negotiated, but the U.S. seems to have not provided a clear plan on how to reach an agreement.
Trump also hinted that he wants the EU to lower its standards to allow more U.S. goods into its market:
“They set rules that make it impossible for you to sell cars there... The rules and regulations they set have only one purpose: to make it impossible for you to sell products in those countries. And we will not let that happen; these are non-monetary barriers.”
Some media commentators noted that Trump's conditions for energy procurement from the EU may make U.S. LNG producers the biggest beneficiaries, while Europe's energy diversification strategy may face significant challenges