The EU's counter tariffs cut to the heart of Trump's political heartland ahead of crucial midterm elections in November.
Products targeted include well known US brands such as Kentucky whiskey and Levi jeans.
Confirming the move, the EU said it would "import more liquefied natural gas from the United States to diversify and render its energy supply more secure".
The potential opportunity for US exporters of liquefied natural gas (LNG) is considerable.
The EU currently imports 70 per cent of the LNG it needs, and that share is set to rise. The bloc has taken 10 per cent of US LNG exports since 2016.
Growing European demand "could welcome imports of liquefied natural gas from the US, if the market conditions are right and prices competitive", the European Commission said.
However, the commission also highlighted the need for the US to reduce barriers to trade in gas.
One regulatory restriction - the need for LNG exports to be given prior approval before they are sent to the EU - should be lifted, the commission said.
This energy source was also at the heart of tensions during Nato talks last month, when Trump excoriated the German-Russian gas pipeline Nordstrom II.
Germany was "totally controlled by Russia" due to its dependence on energy from the nation, Trump said.
The Russian economy has been severely affected by low oil prices in recent years.
As a result the nation has tried to increase the market share for its other fossil fuels in the EU.
It aims to have 40 per cent of the bloc's gas market in the years ahead.
Miguel Arias Cañete, commissioner for climate action and energy, said that diversification was vital in order to ensure the security of the EU's gas supply and therefore boosting US imports was prudent.
This story was first published in the Daily Telegraph and reproduced with their permission
