Trump’s Tariffs Just Torched His Own Energy Agenda

This will dent the absolute value of the U.S. petroleum trade surplus, which America began to show with the surge in oil production in the shale revolution era. Petroleum and energy trade, in fact, is one of the few sectors in which the U.S. has a large trade surplus in the dozens of billions of U.S. dollars annually. Even if the EU, Japan, and South Korea pledge to buy and indeed buy more U.S. LNG and oil, part of the gains could be offset by weak prices and lower demand for energy in case all the tariff uncertainty brings about a global downturn or recession.

Author: Tsvetana Paraskova

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