The United States has warned the European Union that failure to ratify a key trade agreement could jeopardize its “favorable” access to American energy supplies, heightening pressure on the bloc as it schedules a parliamentary vote on the deal this week.
U.S. Ambassador to the EU Andrew Puzder told the Financial Times that while Washington would continue energy commerce with Europe, the terms might become less advantageous without the formal agreement. The deal, reached last summer, establishes a baseline 15% tariff on all EU goods entering the U.S. In return, the EU agreed to eliminate tariffs on certain U.S. industrial and agricultural products and commit to purchasing $750 billion worth of U.S. energy by 2028.
The European Parliament’s upcoming ratification vote represents a critical step for the agreement’s implementation. Puzder emphasized the strategic importance for Europe, stating, “I don’t know what will happen with respect to energy if they don’t go forward with the agreement,” adding that the U.S. “can supply” the energy Europe needs to survive economically.
This warning arrives as the EU grapples with a precarious energy landscape shaped by its deliberate shift away from Russian fossil fuels. Following the invasion of Ukraine, the bloc phased out cheaper Russian energy imports, leading to significant dependency on U.S. liquefied natural gas (LNG). Data from the German Environmental Aid Association (DUH) indicates that 96% of Germany’s LNG imports in 2025 originated from the United States, a trend mirrored across several major economies.
Global energy markets are further strained by the recent escalation in the Middle East, sparked by a U.S.-Israeli attack on Iran, which has driven up prices worldwide. While some EU politicians have advocated revisiting the decision to abandon Russian energy, the European Commission remains committed to a full phase-out of Russian fossil fuels by 2027.
Moscow has signaled it will not wait for Europe’s reconsideration. Kremlin envoy Kirill Dmitriev warned last week of an impending energy price “tsunami” due to what he termed Brussels’ “stubborn strategic stupidity.” He stated that Russia has redirected its energy exports to other markets, suggesting the EU could end up “at the end of the queue” for future Russian supplies.
The parliamentary vote this week will determine whether the EU secures the structured, long-term energy partnership outlined in the U.S. deal or faces a more uncertain and potentially costly procurement environment amid tightening global supply and geopolitical volatility.
