Donald Trump tells EU to buy US oil and gas or face tariffs — “It seems odd as a ‘threat’ given that von der Leyen alluded to the possibility of doing precisely this”: EU official

7 comments

1. Trumpian risk premium:

   *[…] “I told the European Union that they must make up their tremendous deficit with the United States by the large scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way!!!” Trump wrote on his Truth Social platform on Friday.*

   *Trump’s threat follows overtures already made by Brussels suggesting member states could buy more US LNG, which has been a lifeline for the bloc after Russia squeezed supplies of fossil fuels following its full-scale invasion of Ukraine.*

   *[…] One EU official observed: “It seems odd as a ‘threat’ given that von der Leyen alluded to the possibility of doing precisely this.”*

   *The US is already the biggest supplier of LNG and oil to the EU. In the first half of 2024, the US provided around 48 per cent of the bloc’s LNG imports, compared with 16 per cent from Russia.*

   *America supplied 15 per cent of the EU’s oil imports in the third quarter, according to Eurostat, the EU’s statistical agency.*

2. The issue is the price and the terms

   The EU has recognised its vulnerability and wants control over its energy supplies.

   Australia is the world largest supplier of Liquid Natural Gas. In 2021 it exported 88 million tonnes of LNG to Japan and China.

   In 2022 the EU tried to buy LNG off Australia, but arrogantly wanted to buy at the same price it had paid Russia, and it did not care that China and Japan paid far more. (I was slightly involved in the negotiations).

   We made them an offer to help with supply BUT at the same price we sold to China and Japan. Only one shipment was sent, before the EU realised it couldn’t boss Australia around.

   Then under the proposed Free Trade agreement with Australia, it tried again to control our prices.

   It wanted a condition that Australia would not sell any mineral or energy to anyone for less than it sells to the EU. This would effectively give the EU control of our biggest assets. That deal collapsed.

   THEN in January this year it tried again.

   European Union energy regulators tried to launch a liquefied natural gas price assessment as the first step in the EU’s plan to launch a new European benchmark price for LNG, which Europe is switching to, to replace Russian pipeline gas.

   Again this has collapsed. The EU is desperate to control the world’s LNG prices (because its entire economy is dependent upon that price).

   Trump will be aware of this and wants to sell at his price and his terms.

3. A whiff of the ol’ two level game, perhaps? Would not be surprised if this is more to make it look to his base like he’s finally getting Europe to treat us “fairly.”

4. Soo it’s an excuse to not put tariffs like he promised?

5. no one can business like that with this tone arrogant and threatful for this

6. He’s saving face so not to start a trade war.

   He is threatening the EU to do something, which it has already announced it will do months ago.

   I guess everyone is happy. There is no trade war, the EU has cheap non-Russian gas and the Trumpists will call this a victory of a strong president.

7. Okay so this might be a bit niche, but in the early 2000’s there was this video game called Rome Total War. Great game, but it was 20 years ago so the AI was a bit well.. stupid sometimes.

   Every now and then you would get a messenger knocking on your door from some place far away giving you the following message:
   “Please do not attack.
   Accept or we will attack”

   This feels exactly like that.

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