BRUSSELS: In a bold attempt to de-escalate rising trade tensions, the European Commission has proposed a zero-for-zero tariffs deal to the United States, aiming to remove all tariffs on industrial goods between the two major economies. The offer was announced by European Commission President Ursula von der Leyen, who also made it clear that the EU will retaliate if Washington presses ahead with its planned tariff hikes.
At the centre of this standoff is former US President Donald Trump’s latest decision to impose a flat 20% tariff on all European imports starting April 9. This sweeping move will affect over €380 billion worth of EU products, including major sectors such as steel, aluminium, and automobiles. These sectors will also face an extra 25% tariff under separate trade rules.
However, some key sectors have been spared. Pharmaceuticals, copper, lumber, semiconductors and energy have been exempted from the new US tariff policy.
In response, von der Leyen reiterated the EU’s commitment to a fair and balanced trade relationship: “We’ve offered the US zero-for-zero tariffs on industrial goods, just like we have with other partners. It’s still on the table. But if the US proceeds with these tariffs, we’re ready to defend ourselves.”
This offer signals the EU’s willingness to avoid a transatlantic trade war, but also underlines that it won’t hesitate to retaliate if pushed too far.
With talks ongoing and time running out before the April 9 deadline, the pressure is now on Washington to respond.
