EU open to US energy, arm sales talks to stave off | Commodities

By Marta Fiorin and Cecile Mantovani

DAVOS, Switzerland (Reuters) – The European Union is open to discussing purchases of vitality and arms from the USA to chase away tariffs that President Donald Trump has threatened to impose on the bloc, EU’s high economic system official mentioned on Thursday.

Trump has vowed to deal with a long-running deficit in items trade with the EU, both by way of tariffs of more oil and fuel exports.

European Fee Government Vice President Valdis Dombrovskis mentioned the EU would defend its rights and pursuits if tariffs had been imposed and referred to the retaliatory duties the EU imposed on U.S. imports when EU metal and aluminium had been hit by tariffs during Trump’s first time period.

Initially although, the EU needed to interact with the new U.S. administration, Dombrovskis, who’s in charge of the economic system on the bloc’s government, instructed Reuters in an interview in Davos.

He mentioned U.S. liquefied (LNG) imports had confirmed useful when Russia turned off most fuel provides to Europe in 2022 after its invasion of Ukraine. The U.S. is now the EU’s largest LNG provider.

“We’re seeking alternative suppliers,” he mentioned. “So we had a good cooperation over the last couple of years, and from our side we are ready to see how to further that.”

Europe has mentioned one other avenue could possibly be army spending, given Europe’s need to strengthen its defence capabilities to counter Russia, which might require robust cooperation within NATO.

“So certainly there is scope also to discuss how we further strengthen also our military cooperation and military-industrial cooperation,” Dombrovskis mentioned.