Should Trump ask the EU to buy more U.S. oil and gas?

• US President-elect Donald Trump has threatened tariffs on several countries for failing to curb illegal border crossings and drug trafficking.

• He has also threatened the European Union (EU) due to the US’s trade deficit with the bloc.

• The US imports €40.7 billion worth of motor cars and vehicles from the EU in 2023, the second biggest commodity in terms of value from the bloc.

• If higher tariffs are imposed, these cars would become more expensive, benefiting U.S. car manufacturers.

• Consumers in the U.S. have been importing cheaper goods from countries like China, leading to increased spending on cheaper products.

• Trump’s solution to bridge the EU’s trade deficit is questionable as the EU’s dependency on the U.S. for oil and gas has increased rapidly.

• The U.S. exported 31.8% of its crude oil production in 2023 compared to just 18.7% five years prior.

• The question remains whether the U.S. can sustainably increase production if the export share increases further, given the U.S. being the biggest consumer of oil and natural gas domestically.