Hold up, did you hear that?
Just DAYS before a massive 25% tariff was set to hit—BAM!
Trump and the EU dropped a trade bombshell. What’s the big deal? Well, 15% tariffs, some serious duty-free perks, and a $750 billion energy deal that could change the game! If you thought that was wild, hold on tight—this comes right after a HUGE deal with Japan. It’s like the trade world’s having a party, and you won’t believe who’s on the guest list. Curious yet? Trust me, you won’t want to miss how this deal could flip the script on global trade. Let’s dive in!
Table of Contents

Trump’s Big Announcement – 15% Tariffs All Around

- Trump announced, “We’ve agreed to apply a flat 15% tariff on all items, including cars.”
- But wait, there are a few exceptions.
- The 50% tariffs on steel and aluminum will stay. Pharmaceuticals will be handled separately, and some strategic items? They’ll be duty-free.
- The duty-free items? The EU had been pushing hard for those.
- According to the European Commission President, these duty-free goodies include “aircraft, parts, certain chemicals, generic drugs, semiconductor equipment, specific crops, natural resources, and key raw materials.” Sounds like a shopping spree, right?

Big Energy Moves – $750 Billion Deal

6. In return for the 15% tariff and the duty-free treatment, the EU agreed to buy $750 billion worth of US energy over the next three years.
7. The EU is planning to phase out all Russian fossil fuels (natural gas and oil) by 2028. Goodbye, Russia!
8. To fill that gap, the EU plans to buy $250 billion worth of US energy every year. On top of that, they’re also committing to invest an extra $600 billion in the US and purchase military equipment. Talk about a major win for the US!
9. This wasn’t just a simple handshake; it was a top-down agreement between the leaders. There are some differences, but it’s smoother than some other international deals.
10. However, there are still a few areas that need to be sorted out.
11. For example, the pharmaceutical tariff: the EU wants 15%, while Trump has a different approach. And the $600 billion investment hasn’t been finalized by the EU yet.

US Energy Exports – Can the US Keep Up?

12. Let’s look at the energy numbers.
13. From the first half of 2025, the EU is importing $22 billion worth of US LNG (liquefied natural gas) and $49 billion worth of oil and petroleum products. That’s around $71 billion in total.
14. If we project the EU’s total energy imports for 2025, they’re expected to hit $178 billion.
15. Of that, $48 billion will be LNG, $40 billion will be pipeline natural gas, and $94 billion will be oil and coal.
16. Here’s the interesting part: 47% of that LNG and 52% of the oil and coal comes from the US
17. Pipeline natural gas doesn’t count here, as it’s not coming from the US But still, the focus is on boosting imports of LNG and oil from the US
18. The tricky part? Exporting $250 billion in energy to the EU when they currently import only $178 billion a year globally. That’s going to be tough!
19. The US will have to make some big adjustments to meet that goal.
$250 Billion Energy Exports – Will It Happen?

20. Let’s take a look at whether the US can even handle this.
21. In the first half of 2025, the US exported $94 billion in crude oil and $152 billion in natural gas globally. That adds up to around $246 billion.
22. So, the $250 billion target is basically the total US energy export volume worldwide. Getting it all to the EU alone would be quite a challenge.
23. But don’t count the US out just yet. There’s some good news on the horizon.
24. The US is ramping up its energy export infrastructure, especially with LNG. The Plaquemines and Golden Pass terminals are set to increase export capacity by about 24% by 2026.
25. Even with this boost, it’s still going to be hard to hit that $250 billion target for the EU. But hey, it’s all about the long-term game!
26. The US will likely need to keep expanding its energy infrastructure to make this work.
27. But the future looks bright, as the US and EU continue to work together to make sure energy needs are met.

Can the US Handle the Heat? EU’s Big Energy Bet and the LNG Race

Here’s the wild part: looking at the current energy game, the EU just basically told the US, “You make it, we’ll buy it. No questions asked.” Sounds like the perfect deal, right? But there’s a catch. The US and the EU have the Atlantic Ocean between them, so no easy pipelines like Russia’s setup.
So, what’s the move? The US is all in on LNG. The solution is clear—LNG tankers. The US is about to order a ton of them, ramping up their export game in a big way. It’s like the US just got handed the keys to Europe’s energy future.
But wait… here’s the cliffhanger. What about China? With the US stepping up, you can bet China’s watching closely. Will they let this one slip, or will they jump into the energy ring too? The race for energy supremacy is heating up, and the US and EU are only getting started. This isn’t over—it’s just getting good!

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