Tariffs also play a central role in this administration’s economic strategy, a stance that dates back to their first term in 2016. Now in 2024, proposals include significant tariff increases on foreign goods to support U.S. manufacturing and job growth. Plans floated during the campaign suggested a universal tariff of 10% to 29% on most foreign products, a 60% tariff on Chinese goods, and the removal of China’s permanent normal trading status. A proposed “reciprocal” tariff would match the tariffs other countries place on U.S. goods.
Since Russia’s invasion of Ukraine in 2022, Europe has increasingly relied on international suppliers for fuels and oil, with the U.S. emerging as a leading supplier of LNG and crude oil. In 2023 alone, U.S. LNG exports to Europe surpassed $30 billion, accounting for two-thirds of all U.S. LNG shipments. This surge has contributed significantly to U.S. revenue and tax income. Meanwhile, European consumers have faced higher energy costs, which have accelerated Europe’s shift away from fossil fuels.
This incoming administration has campaigned on a strong opinion on not interfering in the Russian conflict. If the Russian invasion continues without U.S. support to Ukraine the conflict could have detrimental effects on an international scale. In terms of US fossil fuel export policies, the Russian economy will favor these policies. LNG purchasers such as Europe may not agree with the decisions of the new administration and could result in some consequences for U.S. LNG exporters.
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