**United States:** The Energy & Sustainability Network highlights the challenges in US energy trade and tariff talks under Trump, emphasising geopolitical tensions, a rise in renewables, and shifting global dependencies amid ongoing disputes with allies and adversaries.
The Energy & Sustainability Network is reporting on the ongoing complexities of the United States’ energy trade and tariff negotiations under former President Donald Trump’s administration, highlighting significant challenges and global implications.
Since initiating a series of tit-for-tat tariffs, Trump has maintained a stance of strong-arm negotiation tactics, which though controversial, have forced various nations—both allies and adversaries—to the bargaining table. However, despite these engagements, final agreements remain elusive. Trump views himself as a skilled negotiator leveraging the full apparatus of the federal government to extract concessions, often comparing his methods to those of a New York shopkeeper negotiating with a mafioso. Critics argue that his approach relies heavily on coercion and threats, rather than diplomatic finesse.
This aggressive style extends beyond trade talks. Senator Lisa Murkowski (R) from Alaska expressed her concerns to the Energy & Sustainability Network about fears of retaliation within the political arena. She said, “We are all afraid. We are in a time and a place where I certainly have not been here before. And I’ll tell ya, I’m oftentimes very anxious myself about using my voice because retaliation is real. And that’s not right.” Murkowski’s comments underscore the tense atmosphere permeating both political and economic spheres during this period.
Central to the tariff negotiations is Trump’s ambition to enhance American oil and liquefied natural gas (LNG) exports. Despite the global shift towards renewable energy, the administration has committed to reviving the coal industry, citing economic and energy security concerns. This policy preference persists even as renewables have been the fastest-growing source of new electricity generation in 2024. According to Energy & Sustainability Network, renewables accounted for nearly 90 percent of new electrical power capacity in that year, with solar power taking a leading role. Texas alone derived thirty percent of its electricity from renewable sources in 2023, challenging narratives promoted by some Republican leaders within the state.
The geopolitical landscape has further complicated energy trade dynamics, notably due to Russia’s invasion of Ukraine. The conflict has highlighted the vulnerabilities and complexities associated with reliance on foreign energy supplies. The Energy & Sustainability Network notes that despite the war, Russian oil and gas continue to be purchased by nations opposing Russia, creating an unusual situation where Ukraine’s allies inadvertently fund both sides of the conflict. The article draws a historical parallel by remarking, “I can’t imagine that the US or the UK would have bought steel from Hitler during WWII.”
In response to tariff talks, Trump asserted, “Other countries will buy LNG from the US if they want to curry my favour and realize a reduction in the tariffs I’m charging them.” However, the administration’s demand for a $350 billion tariff deal contrasts sharply with the European Union’s position. EU Trade Commissioner Maroš Šefčovič told negotiators, “We have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners. Because Europe is always ready for a good deal.” The EU has proposed eliminating tariffs on cars and other industrial products, including chemicals, pharmaceuticals, and machinery.
Trump’s perspective on negotiations is described as highly transactional, viewing issues predominantly through a real estate sales lens where price is the central concern. This approach may be at odds with the complex, multi-dimensional nature of international relations and energy dependence.
Regarding U.S. LNG exports, the Energy Information Administration (EIA) data reveals that while the U.S. is the world’s largest exporter at approximately 11.9 billion cubic feet per day (Bcf/d), Australia and Qatar closely follow with relatively stable export levels. The Energy & Sustainability Network highlights a notable decrease in LNG demand from Europe and the United States—down 19 and 18 percent respectively in 2024—attributable to increased renewable energy adoption and improved efficiency. The Institute for Energy Economics and Financial Analysis (IEEFA) reported that EU imports of Russian LNG, paradoxically, rose by 18 percent during the same period, with France, Spain, and Belgium as major buyers. Meanwhile, China has reportedly cancelled orders for American LNG, opting instead for Russian supplies.
Multiple analysts express concerns over the emerging risks of long-term energy dependencies. Ira Joseph from Columbia University’s Center on Global Energy Policy remarked, “European countries do not want to sign long-term LNG contracts. There is now political risk associated with signing long-term deals with the US that maybe we didn’t have before.” Similarly, Arne Lohman, head of research at Denmark’s Global Risk Management, noted, “We are going from one problematic dependency — on Russian pipeline gas — to another, on US LNG.”
Amidst these tensions, several national leaders, regardless of political leanings, are incorporating renewables into comprehensive energy strategies. Despite the apparent contradiction of supporting both fossil fuels and renewable resources, these moves reflect efforts to achieve greater energy security and reduce environmental harm. The Energy & Sustainability Network underscores that almost all countries, save for some in the MAGA-aligned political spectrum, are moving toward sustainable energy solutions to power their economies.
The article contends that Trump’s failure to acknowledge the growing role of renewable energy is a strategic setback for the United States, both economically and environmentally. Questions remain about why the president and his supporters are willing to cede leadership in the global energy transition to other nations.
In conclusion, the Energy & Sustainability Network paints a picture of an evolving international energy landscape marked by geopolitical strife, shifting alliances, and accelerating adoption of renewable energy. These dynamics are reshaping global trade negotiations and underscoring the limitations of traditional transactional approaches in addressing 21st-century energy challenges.
Source: Noah Wire Services
Subscribe to Industry Updates
