EU eyes increased LNG imports as tariff tensions rise
The European Commission has expressed its willingness to explore the possibility of boosting LNG imports from the United States, according to spokesperson Olof Gill. U.S. President Donald Trump suggested on Monday that this could be a potential topic in discussions about modifying 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. He highlighted LNG, commenting on the remarks of the European Commission President, Ursula von der Leyen, who earlier on Monday mentioned that in negotiations with Washington, Brussels had proposed mutual elimination of tariffs on cars and other industrial goods.
The European Commission made this detail from behind-the-scenes talks public, as Trump's advisors reportedly include individuals who favour this offer. However, the U.S. President said on Monday that this is not sufficient.
It is worth noting that, according to a decree signed last Wednesday, a 10% general tariff on imports to the United States has been in effect since April 5, and on Wednesday, April 12, tariffs on specific countries are set to take effect. For the EU, there is a planned tariff of 20%.
LNG has been on the table from the very beginning
Unofficially, a source in Brussels mentioned that LNG has been part of the discussions with Washington from the very start. This is particularly relevant as the European Union faces difficulties in reducing its reliance on Russian resources, even though imports of Russian LNG have been increasing. To decrease these purchases, the EU will need to switch to other suppliers; the USA is a natural option.
The European Commission, responsible for trade policy, stresses its openness in negotiations with Washington. Alongside the elimination of tariffs on cars and industrial goods, the EC is also open to discussing non-tariff barriers, although the US and EU interpret these differently. However, Brussels rules out negotiating VAT issues, as this is considered solely a tax policy matter.
Moreover, in discussions about non-tariff barriers (such as quantitative restrictions or technical and phytosanitary standards), the EC would expect concessions from the United States, which also utilizes these in its trade policy. Additionally, negotiating non-tariff barriers is considered very challenging, so reaching an agreement would take considerable time.
There will also be no negotiations about easing regulations governing the operations of tech giants. This pertains to the Digital Services Act (DSA) and the Digital Markets Act (DMA). If any company is penalized under these regulations, there is no question of reversing the penalties.
On Monday, the European Commission proposed to member states a list of US goods that will be subjected to tariffs ranging from 10% to 25% in response to increased steel and aluminum duties. Member states will decide on this by a qualified majority on Wednesday. Some tariffs will take effect in April, others in May, with a few goods, such as soybeans or nuts, in December.
The EU is then set to begin working on a response to so-called reciprocal tariffs, where imports from the EU will face a 20% tariff. The value of the goods affected by these tariffs is estimated at 300 billion euros.
