Tariffs all the way’: Trump says European Union must buy U.S. oil and gas in trade ultimatum Published Fri, Dec 20 20242:17 AM ESTUpdated An Hour Ago thumbnail Jenni Reid including China, Mexico and Canada a signature part of his presidential campaign — and he’s continued the narrative as he prepares to enter office, despite economists warning of risks to domestic inflation. Analysts say there is high uncertainty over the extent of the tariffs Trump will be willing — or able — to follow through with, and how much of his rhetoric is a starting point for striking deals. US President Donald Trump arrives to deliver a statement along with Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau, on the signing of a new free trade agreement in Buenos Aires, on November 30, 2018, on the sidelines of the G20 Leaders' Summit. Trump vows an additional 10% tariff on China, 25% tariffs on Canada and Mexico Enrico Letta, former prime minister of Italy and dean of the IE School of Politics, Economics and Global Affairs, told CNBC’s “Squawk Box Europe” on Friday that the EU needed to be prepared to retaliate to Trump’s threat. “I think it is a transactional approach, we have to respond to thias transactional approach. [Trump] mixes together energy and tariffs on goods, manufacturing and so on. I think it’s incorrect because the two topics are completely different,” Letta said. “If the deal is proposed by Trump — such an asymmetric deal on topics that are not linked one to the other — I think we have to do the same.” “Considering that the most asymmetric part is the relationship on the financial side, we have to start considering that maybe replying on the financial side could be a solution,” he added. The U.S. was the biggest recipient of EU goods in 2023, accounting for 19.7% of its exports. The EU has already indicated it is expecting to purchase more U.S. energy in the coming years. Last month, European Commission President Ursula von der Leyen told reporters that replacing Russian liquefied natural gas (LNG) imports with U.S. volumes would be cheaper, and that the EU would look to engage and negotiate on the matter when Trump takes office in 2025. CNBC has contacted the European Commission for comment on Trump’s remarks.