The European Union (EU) extended an offer to the United States on Monday for a "zero-for-zero" tariff agreement on all industrial goods. This move is aimed at de-escalating the mounting trade tensions resulting from President Donald Trump’s recent tariff policies. The head of the European Commission, Ursula von der Leyen, confirmed the offer but cautioned that the EU is ready to implement countermeasures if the U.S. does not respond positively.
Maros Sefcovic, the European Commissioner for Trade, elaborated that this proposal is intended to lay the groundwork for a long-term, constructive dialogue and to avert a trade war. However, as reported by EFE, he acknowledged that he currently perceives no genuine willingness for dialogue from the U.S., which has already imposed 25% tariffs on European goods like steel and aluminum.
In retaliation, Brussels announced plans to distribute a list of American products to EU member states, which will face new tariffs starting April 15, followed by a second wave on May 15. The most impacted sectors include chemicals, pharmaceuticals, automotive, and machinery.
Von der Leyen emphasized that the EU is not only protecting its interests against tariffs but also taking steps to prevent trade diversion via an import surveillance group. She confirmed that all options are on the table, including measures against economic coercion.
Spanish Minister Carlos Cuerpo highlighted the EU's openness to dialogue, stating that this proposal clearly demonstrates a commitment to strengthening transatlantic relations.
Meanwhile, the markets responded with apprehension. Asian and European stock exchanges saw sharp declines on Monday, driven by fears of a global recession fueled by reciprocal tariffs between major powers. The Japanese Nikkei plummeted 7.8%, and Frankfurt suffered a 7.86% drop, amid warnings that the crisis could spread, severely impacting emerging economies and international trade.
Understanding EU-U.S. Trade Relations
What is the EU's proposal to the U.S. regarding tariffs?
The EU proposed a "zero-for-zero" tariff agreement on all industrial goods to the U.S. in an effort to reduce trade tensions.
How has the U.S. responded to the EU's zero tariff proposal?
As of now, there has been no positive response from the U.S., which has already imposed 25% tariffs on certain European imports.
What sectors will be most affected by the EU's retaliatory tariffs?
The most affected sectors include chemicals, pharmaceuticals, automotive, and machinery industries.