In a strategic move that is likely to escalate trade tension between the USA and European Union, President Donald Trump has demanded that the EU purchase more American oil and gas.
The demand is a part of Trump’s broader agenda of expanding American energy exports and reduce country’s trade deficit. However European Union is keen to avoid a trade war with USA. European Union commission President Ursula Von Der Leyen has extended a Olive branch to avoid a full blown conflict. She proposed to USA that European union can increase their imports of liquefied natural gas (LNG) from the United States. This proposal did appease Trump and managed to avoid a trade war.
Von Der Leyen emphasized the need of dialogue and cooperation proposing a three steps approach to resolve the trade tension including engaging in talks, discussing common interests and then negotiating a deal.
The European Union offer to buy more American gas is a well calculated move to dissuade Trump from imposing additional tariffs. The EU aims to bring Trump back to the table of negotiation. This strategy reflects EU’s determination to protect its economic interest and maintain a level in the playing field.
The dispute between both sides is likely to persist with both countries seeking to advance their interests. But the proposal put forward by Von der leyen is a glimmer of hope for both countries to engage in a peaceful cooperation.
