Trump asks the EU to close the US trade surplus by purchasing $ 350 billion worth energy products
The requirement of the President of the United States, Donald Trump, to proceed with a trade agreement with the European Union, provided that it purchases energy products of value 350 billion dollars From the US it is complicated and full of restrictions.
Donald Trump made an offer in Europe this week. “Buy our energy, a lot of our energy, and we can stop the trade war.”
In fact, the satisfaction of the term Trump encounters is finding difficulties as it would require a comprehensive restructuring of how Europe buys energy.
In addition, it will link the energy security of the area to a partner that is considered increasingly unreliable.
Following the European Union’s offer to reduce duties to zero for industrial products with the US, Trump replied that this is not enough. The EU, he said, should close the US trade surplus by purchasing energy products worth $ 350 billion. This amount, almost equal to the value of all oil and gas introduced by the EU last year, would make the US the dominant energy supplier of Epirus.
“They have to buy their energy from us because they need it,” Trump told the Oval Office.
Trump announced Suspension of 90 days of duties implementation which has imposed, during which the EU and the US will have to reach a trade agreement. The block is one of America’s largest trading partners and the EU has left open the possibility of an agreement to increase energy markets from the US.
Similar terms were part of an agreement signed by the EU in 2018 during Trump’s first term with the situation, however, being different seven years later. The EU has already significantly increased US energy markets and does not intend to buy more. However, this may lead Trump to demand other EU concessions, such as the market for agricultural products and the reduction of non -tariff barriers. This last concession includes taxes to US technological giants and security regulations that exclude US foods to satisfy Trump.
“The EU’s ability to buy more American energy to achieve tariff relief is a myth to be rejected,” said Simone Tagliapietra, a superior partner at Bruegel, a Think Tank based in Brussels. “It’s a fantasy.”
1. The quantity he asks is excessive
The EU introduced about $ 420 billion of oil, gas and coal from various countries last year, including a significant amount from the US.
It was not clear where the number of $ 350 billion came from, as EU trade surplus with the US was $ 237 billion last year, and if the services were included, the services were $ 161 billion.
2. Energy Security through different suppliers
Europe is skeptical of connecting its energy security to a single source after Russia has closed the gas pipelines in the area in view of its full -scale invasion of Ukraine. EU energy imports now come from various countries, including the US, none of which represents more than 20% of total oil or gas imports.
“The important thing for us is to continue to maintain the variety of our energy suppliers,” said Anna-Kaisa Itkonen, a spokesman for the European Commission, the EU Executive Body. “We want to avoid excessive dependence on any individual supplier.”
3. Contracts with other suppliers
For gas, the EU depends more on its producers than the US, which must liquefy the gas to send it through the ocean to special tankers. Norway’s largest natural gas supplier is Norway, a fixed NATO member with a network of pipelines that end up in mainland Europe. It also imports from Algeria, a huge natural gas producer with three pipelines associated with Epirus and an important fleet of LNG tanks.
However, there is room for limited markets. Europe could replace the liquefied natural gas that is still importing from Russia, Ithconen said. However, this corresponded to only $ 7.2 billion or 16% of total EU LNG imports by volume.
4. Europe has already increased markets from the US
The EU is already buying much more American energy than before Russia’s full scale of Russia in Ukraine. In 2024, the US supplied about 16% of oil imports to the EU and 45% of its LNG, making it the largest supplier of these imports, according to official EU statistics.
In the short term, Europe needs an even greater injection of energy. A cold winter left its natural gas warehouses below normal levels. EU rules require countries to fill the warehouses from 35% now at 90% by December 1st.
5. Limited LNG production capabilities from the US
There are restrictions on the rapid transport of more US energy to Europe. LNG terminals in the US, where natural gas is overwhelmed and loaded on ships, are now operating in full capacity. And while more time capacity is expected to be added, European companies are hesitant to sign long -term contracts with US suppliers, given the EU’s goal of a significant reduction in gas consumption to reduce greenhouse gas emissions.
6. Contrast to increasing fossil fuel imports
Europe is not a growing market for fossil fuels. Oil and gas imports have declined in recent years, partly due to the development of solar and wind energy, but also because of the stagnation of economic growth and the closure of certain plants that consumed a lot of energy when prices were launched in 2022.
The European Union used 20% less natural gas to produce energy last year than in 2019, according to a report by the environmental Think Tank Ember. Solar and wind energy represented 28% of the total electricity generated in the EU last year, compared to 26% of gas and carbon in total.
7. The EU cannot force companies to buy energy from the US
Another obstacle is that the EU cannot impose a quick change in imports. EU energy markets are mainly made by private companies based on consumer demand and market prices. Many of them have long -term agreements with suppliers from Norway, Qatar, Algeria, Saudi Arabia and other countries. The breach of these agreements would result in significant sanctions and lawsuits.
“Companies are free to decide where to buy oil and gas, and the EU cannot impose any joint markets here,” Tagliapietra said.
Source :Skai
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