Europe eyes LNG deal amid US tariff showdown
The European Commission has expressed its willingness to explore the possibility of boosting LNG imports from the United States, according to spokesperson Olof Gill. President Donald Trump suggested on Monday that such purchases might be part of discussions regarding the modification of tariffs imposed by the US.
Trump suggested on Monday that one swift and simple solution would be for them to purchase energy from the U.S., which could generate $350 billion in just a week, as they would be required to buy and commit to comparable energy volumes. Trump highlighted LNG while commenting on the words of European Commission President Ursula von der Leyen, who had earlier revealed that Brussels offered to introduce mutual zero tariffs on cars and other industrial goods during negotiations with Washington.
The European Commission made these details from behind-the-scenes negotiations public, as Trump's advisors reportedly include individuals who are very supportive of this offer. However, the US President said on Monday that this offer was insufficient.
Recall that, according to a decree signed last Wednesday, a 10% general tariff on imports to the USA has been in effect since April 5, and on Wednesday, April 9, specific tariffs on certain countries are set to be implemented. For the EU, these tariffs will be at 20%.
LNG has been on the table from the very beginning
An unofficial source in Brussels noted that LNG has been a central topic since the beginning of talks with Washington. This is particularly true since the EU faces a challenging situation due to its commitment to reduce reliance on Russian resources, yet Russian LNG imports have recently increased. To decrease purchases from Russia, the EU will need to switch to other suppliers; the USA would be a natural choice.
The European Commission, responsible for trade policy, emphasizes its openness in negotiations with Washington. Besides zero tariffs on cars and industrial goods, the EC is also ready to negotiate non-tariff barriers, though the US and EU interpret these differently. Brussels rules out negotiating VAT issues with Washington, viewing it solely as a tax policy matter.
In discussions about non-tariff barriers—such as quantitative restrictions or technical and phytosanitary standards—the EC would also expect concessions from the US, which also employs these measures in its trade policy. Moreover, negotiations on non-tariff barriers are considered the most challenging, so resolving them would take considerable time.
There will be no talks regarding the easing of regulations governing tech giants, specifically concerning the Digital Services Act (DSA) and the Digital Markets Act (DMA). If a company is sanctioned under these regulations, penalties will not be canceled.
On Monday, the European Commission proposed to member states a list of US goods that will face tariffs ranging from 10% to 25% in retaliation for increased steel and aluminum duties. Member states will decide on this by a qualified majority on Wednesday. Some tariffs will take effect in April, with others starting in May, and a few goods, such as soybeans or nuts, being affected in December.
The EU is also preparing to develop a response to so-called reciprocal tariffs, which will be 20% on imports from the EU. The value of affected goods amounts to 300 billion euros.
