President Trump has consistently cited LNG as an opportunity to avoid a worsening trade war with Washington. “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,” he said in December.
The deal between Venture Global and ENI comes after Italian Prime Minister met with Trump and insisted that Italy would have to increase its LNG imports to maintain friendly relations. The size and value of the contract will likely make a significant dent in the size of the apparent trade deficit calculated by the White House.
Trump on Saturday published a surprise letter sent to European Commission President Ursula von der Leyen in which he announced 30 percent tariffs would be applied to the bloc’s exports from Aug. 1. However, officials have expressed hope that the grace period can be used to negotiate an alternative deal.
The EU’s chief trade negotiator, Maroš Šefčovič, was flying to Washington on Wednesday for high-level talks to try and salvage a deal before Trump’s deadline.