EU offers Trump tariff-free trade deal amid soaring global tensions
Shreedhar Rathi | Apr 08, 2025, 00:13 IST
( Image credit : AP )
European Commission President Ursula von der Leyen has proposed a “zero-for-zero” industrial tariff deal to the U.S., aiming to de-escalate trade tensions amid market turmoil caused by President Trump's new tariffs. This offer, reminiscent of the TTIP talks, seeks to eliminate tariffs on industrial goods. While ready to negotiate, the EU also prepares countermeasures, targeting U.S.
European Commission President Ursula von der Leyen on Monday extended a renewed offer to the United States for a “zero-for-zero” industrial tariff deal, urging cooperation over confrontation as global markets reel from President Donald Trump’s escalating trade war.
“We have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners,” von der Leyen said during a press conference alongside Norwegian Prime Minister Jonas Gahr Støre. “Because Europe is always ready for a good deal. So we keep it on the table.”
Her remarks follow President Trump’s move last week to impose sweeping 20% tariffs on goods from the European Union and several other trading partners — the most significant hike in U.S. trade barriers in over a century.
The EU’s proposal mirrors elements of the once-promising Transatlantic Trade and Investment Partnership (TTIP) talks, which collapsed during Trump’s first term. The TTIP negotiations had nearly secured the removal of tariffs on industrial goods such as cars and chemicals, though talks ultimately broke down over disagreements on agriculture and regulatory standards.
This time, however, von der Leyen signaled both a willingness to negotiate and a readiness to respond with strength.
“We stand ready to negotiate with the U.S.,” she said, while adding, “We are also prepared to respond through countermeasures and defend our interests.”
Trump’s aggressive tariff strategy has rattled investors worldwide. European stocks suffered their worst single-day losses since the early days of the COVID-19 pandemic, erasing trillions in market value across global exchanges.
The EU’s average tariff on U.S. non-agricultural imports is relatively low — just 1.6% on a trade-weighted basis. However, the bloc still levies a 10% tariff on American cars, a sticking point since TTIP talks stalled. The U.S. is currently the only G7 nation still subject to that rate.
EU Trade Commissioner Maroš Šefčovič echoed von der Leyen’s position, noting that the proposed tariff-free deal could include all industrial goods — ranging from automobiles and chemicals to pharmaceuticals, rubber, and plastic machinery.
Still, Šefčovič warned that if the U.S. does not relent, the EU is prepared to strike back. After a meeting of the bloc’s 27 trade ministers in Luxembourg on Monday, Šefčovič told reporters that the Commission had compiled a “robust list” of retaliatory measures. These are expected to target Trump’s earlier 25% tariffs on European steel and aluminum, which have been in effect since last month.
With tensions running high and markets in turmoil, the EU’s offer represents a potential off-ramp — but whether President Trump will take it remains to be seen.
“We have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners,” von der Leyen said during a press conference alongside Norwegian Prime Minister Jonas Gahr Støre. “Because Europe is always ready for a good deal. So we keep it on the table.”
Her remarks follow President Trump’s move last week to impose sweeping 20% tariffs on goods from the European Union and several other trading partners — the most significant hike in U.S. trade barriers in over a century.
A Familiar Offer Revisited
This time, however, von der Leyen signaled both a willingness to negotiate and a readiness to respond with strength.
“We stand ready to negotiate with the U.S.,” she said, while adding, “We are also prepared to respond through countermeasures and defend our interests.”
Markets in Freefall
The EU’s average tariff on U.S. non-agricultural imports is relatively low — just 1.6% on a trade-weighted basis. However, the bloc still levies a 10% tariff on American cars, a sticking point since TTIP talks stalled. The U.S. is currently the only G7 nation still subject to that rate.
A “Robust” Response in the Works
Still, Šefčovič warned that if the U.S. does not relent, the EU is prepared to strike back. After a meeting of the bloc’s 27 trade ministers in Luxembourg on Monday, Šefčovič told reporters that the Commission had compiled a “robust list” of retaliatory measures. These are expected to target Trump’s earlier 25% tariffs on European steel and aluminum, which have been in effect since last month.
With tensions running high and markets in turmoil, the EU’s offer represents a potential off-ramp — but whether President Trump will take it remains to be seen.