Former U.S. President Donald Trump has escalated trade tensions with the European Union (EU, threatening a potential trade war if the bloc does not increase its purchase of American oil and gas. In a December social media post, Trump warned that failure to do so would result in “TARIFFS all the way!!!”
Trump’s statements on Friday marked the first time he explicitly confirmed these threats. While he did not provide details about the specific tariffs or the goods that would be targeted, he mentioned plans for taking “substantial” action.
During his previous term, Trump imposed tariffs of 25 percent on steel imports and 10 percent on aluminum imports from key allies, including the EU, Canada, and Mexico. These actions triggered a trade war, prompting the EU to retaliate with tariffs on American products such as whiskey, motorcycles, and denim, affecting approximately $6 billion worth of goods.
The European Commission has expressed its readiness to respond similarly if Trump proceeds with new tariffs this time. Trade between the EU and the U.S. is significant, with the bloc exporting $576.3 billion worth of goods to America in 2023, according to U.S. Census Bureau data. This figure accounts for nearly 20 percent of the EU’s total exports, making the U.S. its second-largest trading partner.
In addition to his remarks about the EU, Trump announced new tariffs on other key trade partners on Friday. He declared 25 percent tariffs on goods from Canada and Mexico and a 10 percent tariff on imports from China, all set to take effect on Saturday.
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