Britain seeks to outsmart Trump’s trade war by turning to US energy

Britain is looking for ways to avoid falling victim to Donald Trump’s global trade war, as the US president threatens to impose tariffs on the European Union.

Officials in London are considering strategies to keep the UK out of the line of fire, with one possibility being an increase in energy imports from the United States, Caliber.Az reports via foreign media.

Trump, who has already called for higher energy purchases from Europe, said that a deal to spare Britain from tariffs "can be worked out." One potential solution could involve the UK buying more American gas, along with potentially increasing arms imports from the US in a bid to gain favour with the president.

“We are going to have to get gas from somewhere if we are producing less in the North Sea,” said former Energy Secretary and UK Chancellor Kwasi Kwarteng, referring to the UK’s dwindling reserves in the North Sea. "Until more nuclear power comes online, the US is the natural place to go,” Kwarteng continued. “The only other options are Qatar or Russia — and we’re not going to get it from there."

Trump has made no secret of his desire for European countries to purchase more US oil and gas, a strategy he suggested could help avoid the tariffs he has threatened. “The one thing they can do quickly is buy our oil and gas,” Trump remarked.

The UK has already been increasing its reliance on US liquefied natural gas (LNG), with US LNG now comprising 26 percent of the UK’s energy imports, a result of efforts following Russia’s invasion of Ukraine. A former UK energy department official, speaking anonymously, suggested that a deal to import more US energy could be beneficial. “Better to buy from the States than Qatar,” the source said, echoing Kwarteng’s view.

Maxime Darmet, senior economist at Allianz Trade, added that increasing UK energy purchases from the US could also serve as a bargaining chip. "Something Trump wants is for the UK and European countries to increase their purchases of US energy," Darmet noted.

Matthew Oresman, partner at the international law firm Pillsbury, further emphasized the mutual interests, saying, “That’s an area where there’s a UK need, and a US desire and US supply … which could be part of that bridge-building.”

However, negotiations may not be simple. Labour MP and Chair of the Business and Trade Committee, Liam Byrne, suggested that the UK could be required to make further concessions. “I think there are going to be a number of bargains that the UK might need to put on the table,” Byrne said, adding that, “LNG purchases could be one thing the UK could offer to do.”

By Aghakazim Guliyev