EU-U.S. Energy Trade Deal Fails to Meet Spending Targets Amid Price Declines
The EU's trade deal with the U.S. has not delivered on its promise of higher energy import spending. From September through December, the bloc spent 7% less on American oil and gas compared to the same period last year, despite increased imports of U.S. liquefied natural gas. The decline is attributed to falling commodity prices, which dragged down the total value of imports to $29.6 billion.
"Commodity purchases were negotiated bilaterally and driven by economics, including freight costs and margins, rather than political pledges," said Gillian Boccara, senior director at Kpler. The $750 billion annual target by 2028 appears unrealistic, with current imports at just $73.7 billion for 2025—less than a third of the required annual figure.
Even a complete replacement of Russian gas with U.S. LNG WOULD only boost imports to about $29 billion annually, far short of the goal. Market dynamics, not diplomacy, continue to dictate energy trade flows.
