The EU has proposed a “zero-for-zero” tariff scheme, as stated by European Commission President Ursula von der Leyen, aiming to prevent a retaliatory trade war. This initiative reflectted the EU’s commitment to promoting cooperative trade relations. However, the U.S. President Donald Trump indicated that the European Union must commit to purchasing $350 billion of American energy to gain relief from his extensive tariffs. He dismissed Brussels’ proposal of “zero-for-zero” tariffs on cars and industrial goods.
“We have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners. Because Europe is always ready for a good deal. So we keep it on the table,” she remarked during a press conference held alongside Norwegian Prime Minister Jonas Gahr Støre. A decade ago, discussions between the U.S. and EU nearly resulted in the elimination of industrial tariffs under the TTIP — the Transatlantic Trade and Investment Partnership — which ultimately fell apart during Trump’s first term.
Trump’s remarks at a White House press conference were made in response to von der Leyen’s earlier statement that the EU had proposed zero tariffs on cars and industrial goods imported from the U.S. if Trump reciprocated. When asked by a reporter if the offer was sufficient for him to relent, Trump responded: “No, it’s not.”
Projecting calm amid market turmoil
Amid the market turmoil, von der Leyen aimed to convey a sense of stability. “We stand ready to negotiate with the U.S.,” she stated. The EU imposes average tariffs of just 1.6 percent on U.S. non-agricultural products, based on trade-weighted measures. However, it levies a higher tariff of 10 percent on imported American cars — a fee that only the U.S. among G7 countries continues to endure due to the unfinished TTIP discussions.
Von der Leyen’s offer emerged following Trump’s recent imposition of 20 percent tariffs on the EU and a minimum 10 percent levy on other trading partners. This aggressive trade stance has led to a loss of trillions of dollars in global market value, with European stocks experiencing their most significant one-day declines since the onset of the Covid-19 pandemic.
“A lot of people say, ‘Oh, it doesn’t mean anything having a surplus.’ It means a lot, in my opinion. It’s almost like a profit or loss statement,” Trump commented.
Read more: EU countermeasures to Trump’s tariffs effective April 1
Clarifications on EU tariff scheme
Clarifying the details, EU Trade Commissioner Maroš Šefčovič added that the zero-for-zero deal could encompass cars and various other industrial goods, including chemicals, pharmaceuticals, rubber, and plastic machinery. Von der Leyen also did not dismiss the possibility of retaliation: “We are also prepared to respond through countermeasures and defend our interests,” she noted.
Earlier on Monday, the EU’s 27 trade ministers convened in Luxembourg to deliberate on the U.S. measures and the Commission’s response. The EU’s retaliation against Trump’s 25 percent tariffs on steel and aluminum, which have been in effect since last month, is still anticipated this week. Šefčovič informed reporters after the Luxembourg meeting that the Commission had developed “a robust list” of potential countermeasures.
