The European Union should pledge to buy $350 billion worth of energy from the United States if it wants the U.S. tariffs on the EU eased, U.S. President Donald Trump has said.
“We have a deficit with the European Union of $350 billion and it's going to disappear fast,” Trump said, as quoted by POLITICO.
“One of the ways that that can disappear easily and quickly is they're going to have to buy our energy from us ... they can buy it, we can knock off $350 billion in one week. They have to buy and commit to buy a like amount of energy,” President Trump said.
Last week, President Trump announced a 20% across-the-board tariff on all imports from the EU, which will take effect on Wednesday, April 9. Separately, imports of steel, aluminum, and cars are subject to 25% tariffs.
Estimates point that $416 billion (380 billion euros) worth of EU goods would be affected by the U.S. tariffs.
The EU is scrambling to respond to the tariffs, with various reports pointing to EU leaders considering retaliatory tariffs.
However, on Monday European Commission President Ursula von der Leyen said that “Europe is ready to negotiate with the US.”
“We have offered zero-for-zero tariffs for industrial goods. Because we're always ready for a good deal. But we’re also prepared to respond with countermeasures. And protect ourselves against indirect effects through trade diversion,” von der Leyen added.
President Trump has dismissed the ‘zero-for-zero tariffs’ offer and told reporters in the White House who asked if the EU offer was sufficient to back down on tariffs on the EU, “No, it's not.”
President Trump continues to insist that America running trade deficits with its major trade partners is “a big deal”.
“A lot of people say, 'Oh, it doesn't mean anything having a surplus.' It means a lot, in my opinion. It's almost like a profit or loss statement,” he said.
By Charles Kennedy for Oilprice.com
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