The European Union has proposed a "zero-for-zero" tariff agreement to the Trump administration, following the 20% import tariffs that Washington imposed last week. "We have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners," European Commission President Ursula von der Leyen said Monday.
"Because Europe is always ready for a good deal. So we keep it on the table," she said during a press conference with Norwegian Prime Minister Jonas Gahr Støre. "We stand ready to negotiate with the US," von der Leyen added as Trump's tariffs went into effect Saturday. "We are also prepared to respond through countermeasures and defend our interests."
EU Ready for Negotiations
EU Trade Commissioner Maroš Šefčovič of Slovakia said that the zero-for-zero tariff proposal would cover products such as chemicals, pharmaceuticals, rubber, plastic machinery, and automobiles.
However, European leaders have not yet ruled out the possibility of responding with countermeasures to Trump's previous 25% tariffs on steel and aluminum.
Global markets have taken a sharp downturn following Trump's April 2 "Liberation Day" announcement, which introduced a 10% baseline global tariff and signaled even steeper import taxes set to begin on April 9.
In addition, the President, 78, has imposed a 25% tariff on all foreign-manufactured cars entering the United States.
While the EU's average tariff on agricultural goods from countries outside the United States is roughly 1.6%, American-made cars face a 10% import duty.
European Markets Plummet
The pan-European STOXX Europe 600 index plunged 6% at the opening of Monday's trading session but managed to recover some ground, closing down 2.9%, partly influenced by von der Leyen's remarks.
Elon Musk, the head of the Department of Government Efficiency, expressed optimism over the weekend, saying he was "hopeful" that the United States and EU would transition toward "a zero-tariff environment."
"I hope that the United States and Europe can establish a very close partnership," said the Tesla and SpaceX CEO, "effectively creating a free-trade zone between Europe and North America."
A zero-tariff agreement had almost been achieved during President Barack Obama's second term, but the talks fell apart after Greenpeace leaked documents, sparking public backlash. Additional challenges arose due to differences in food safety and production standards between the U.S. and Europe.
Discussions over the proposed Transatlantic Trade and Investment Partnership ultimately came to an end during Trump's first term in 2019. However, this time the EU is desperate to achieve a zero-tariff deal to escape Trump's wrath.
