On his first day back in office, President Donald Trump once again urged the European Union to increase its purchase of American oil and gas, warning that failing to do so could result in tariffs. Speaking to reporters at the White House, Trump stated, “The one thing they can do quickly is buy our oil and gas,” adding that the US would either resolve the issue through tariffs or compel the EU to buy more energy from the US.

The European Union, along with some Asian nations, has been exploring the idea of boosting its energy imports from the United States, particularly as a substitute for Russian liquefied natural gas (LNG). Last year, European Commission President Ursula von der Leyen suggested that more US imports could help the EU reduce its reliance on Russian energy.

However, the US currently has limited additional capacity to increase LNG exports. Given that LNG is typically sold through long-term contracts, adding more shipments to Europe would require rearranging current deliveries, which wouldn’t increase the overall volume of US exports. Instead, European nations might consider securing long-term contracts with US LNG projects, though these projects would take years to complete.

In an effort to boost American energy production, Trump declared a national energy emergency, lifting offshore drilling bans that had been imposed under the previous administration. He also revoked restrictions on new LNG export plant approvals, further signaling his administration’s focus on expanding energy development. “We are going to make a lot of money from energy,” Trump remarked as he signed several executive orders, emphasizing the US’s vast energy resources.