Ireland’s EU Commissioner Michael McGrath has stated that the EU is prepared to advance plans to acquire more US oil and gas as a means of fostering closer relations with the new Trump administration.
Prior to President Donald Trump’s video address at the World Economic Forum in Davos, Mr. McGrath informed RTÉ News: “It is a viable option. The EU has been strategizing for the incoming administration for quite some time and is ready to propose a package aimed at enhancing and solidifying the Transatlantic Economic and trading relationship.”
“We acknowledge that the trade deficit recognized by the US with the EU is a matter of concern.”
“We are willing to collaborate with them to explore ways to address this in a manner that benefits both parties, while always aiming to avoid any type of tit-for-tat tariff conflict, which regrettably would only harm both our economies, especially now when we must support one another and uphold the significance of the international trade order and its well-established and respected regulations.”
It has been reported that European Commission President Ursula von der Leyen has already laid out plans for the EU to collectively procure more Liquified Natural Gas (LNG) from the US.
Mr. Trump has often expressed grievances regarding the EU’s car exports to the US, noting that few vehicles are transported east over the Atlantic.
According to Eurostat, the US trade deficit with Europe was €155.8 billion in 2023.
The US is currently the largest LNG supplier to the EU, accounting for 46% of its LNG imports and 15% of oil imports in the third quarter of 2024.
LNG Tanker FSRU Toscana completes its arrival at the French Mediterranean port of Marseille (file image)
In the past year, EU imports of LNG from Russia have risen, with member states split on the issue of entirely halting LNG imports from Russia.
A decision to impose sanctions that would cut off imports could redirect attention towards US supply.
Mr. McGrath, present in Davos for bilateral discussions, emphasized the EU’s commitment to maintaining a robust trade and investment relationship with the US.
“We are each other’s largest partner. Trade between the EU and US reached approximately €1.5 trillion last year, meaning that entering a tariff war would yield only losers,” he remarked.
He mentioned that the EU has been evaluating various scenarios in case of a trade conflict.
“We are ready to protect the interests of the European Union, as one would expect us to do,” he asserted.
Trump to address leaders
Mr. Trump is scheduled to speak to global business and political leaders at the World Economic Forum in Davos via video link.
The address is anticipated to be his inaugural major foreign policy speech following his inauguration.
Last night, Mr. Trump communicated via social media to Russian President Vladimir Putin, urging him to engage in negotiations over Ukraine immediately or face what he termed taxation, tariffs, and sanctions.
The annual meeting in Davos has been dominated by Mr. Trump’s return, with CEOs and political figures speculating on its potential implications for the global economy, as well as the situations in the Middle East and Ukraine.
This afternoon, they will receive direct insights from the new President.
Mr. Trump has already disrupted much of his predecessor’s domestic agenda.
So far, he has proposed startling ideas on the foreign policy front, including the possible acquisition of Greenland and the Panama Canal by force.
He has withdrawn the US from the Paris Climate Accords and the World Health Organization.
His remarks regarding the Israeli-Palestinian conflict will be closely scrutinized.
UN Secretary General Antonio Guterres has commended his “robust diplomacy” in facilitating progress in the Gaza ceasefire negotiations.
Mr. Trump has claimed he could resolve the Ukraine war in a day, while his advisors now suggest a timeline of six months.
On his Truth Social platform, he advised Mr. Putin to negotiate promptly or face tariffs and sanctions from Russia and other unspecified parties.
Given that Russia has minimal exports to the US and is already facing extensive sanctions, experts are still attempting to interpret the implications of his statements.
No winners
Earlier this week, his trade partners had an opportunity to respond in Davos.
Without mentioning Mr. Trump’s name, Chinese Vice Premier Ding Xuexiang cautioned that “there are no winners in a trade war.”
German Chancellor Olaf Scholz pledged to uphold free trade; however, he conveyed a conciliatory message, indicating that he had fruitful discussions with Trump earlier.
Ms. von der Leyen confirmed that Brussels is prepared to negotiate with Mr. Trump but also emphasized the bloc’s differing stance on climate issues, pledging adherence to the Paris Accord.
Panama’s President Jose Raul Mulino rejected Mr. Trump’s claims regarding the Panama Canal, which the US constructed but transferred to the Central American nation in 1999 under long-standing treaties.
Mr. Mulino expressed that he was “not worried” and that Panama would not be “distracted by this kind of statement.”
Nevertheless, the Republican president enjoys support in Davos.
US President Donald Trump
One of his most fervent supporters on the global stage, Argentina’s libertarian President Javier Milei, is also set to deliver a speech to the WEF just hours before Mr. Trump.
“The world should celebrate the arrival of President Trump,” Mr. Milei remarked at a Bloomberg event yesterday.
“The golden era he envisions for the US will illuminate the entire world as it will signify the end of the woke ideology that is causing significant harm to the planet,” Mr. Milei noted.
One of his business proponents, Marc Benioff, CEO of US tech firm Salesforce, expressed optimism during the same Bloomberg discussion.
“I’m very positive,” he stated. “I eagerly anticipate what is to come. It’s a new day, and it’s an exciting moment.”
