EU Eyes Collective LNG Demand to Navigate Trade Tensions with U.S.

The European Union is considering aggregating its member states' demand for U.S. liquefied natural gas (LNG) as part of trade negotiations aimed at averting a conflict with President Donald Trump's administration. This could enhance Europe's negotiating power and potentially impact trade tariffs on EU goods.

The European Union is contemplating a strategic move to aggregate its member countries' demand for U.S. liquefied natural gas. This initiative is part of ongoing talks with President Donald Trump's administration, aimed at preventing a potential trade war. Lithuania's energy minister highlighted the proposal on Tuesday.

During a Monday meeting, EU ministers assessed their response to Trump's proposed 20% tariffs on EU goods. EU trade commissioner Maros Sefcovic suggested using LNG as a negotiating asset. Trump emphasized the need for the EU to purchase U.S. energy to assist in reducing the trade deficit.

The U.S. currently supplies 45% of Europe's LNG. Zygimantas Vaiciunas indicated that aggregating LNG demand could strengthen the EU's bargaining position. This tactic aligns with the EU's existing joint gas buying scheme, designed to consolidate member states' purchasing power since 2023, amid ongoing geopolitical tensions.