EU Offers Zero Tarrif Deal to US, Warns of Retaliation if Talks Fail

The European Commission proposed a zero-for-zero trade deal to the United States on Monday, aiming to eliminate tariffs on all industrial goods in a bid to avoid immediate confrontation over President Donald Trump’s international tariff policy. European Commission President Ursula von der Leyen emphasized that the EU prefers diplomacy but is prepared to retaliate if negotiations break down.

“We stand ready to negotiate with the US. Indeed, we have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners,” von der Leyen stated Monday afternoon.

“Because Europe is always ready for a good deal. So we keep it on the table. But we are also prepared to respond through countermeasures and defend our interests.”

President of the EU Commission Ursula von der Leyen has said that the EU has offered “zero-for-zero” tariffs on industrial goods to the U.S., saying they are “prepared to negotiate.” Should the U.S. be unwilling to negotiate on tariffs, the EU Commission’s president said that… pic.twitter.com/SHWJw2pD8D

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Trump recently unveiled a sweeping 20% tariff on all goods imported from the European Union, which is scheduled to take effect on April 9. In addition, steel, aluminum, and automobiles will be subject to a higher 25% tariff. These measures are expected to impact over €380 billion worth of EU exports.

Sectors such as pharmaceuticals, copper, lumber, semiconductors, and energy will remain unaffected by the new tariffs.

According to von der Leyen, the EU had previously proposed a zero-tariff arrangement specifically for the automotive sector on multiple occasions, but the US failed to respond meaningfully.

In light of recent developments, the Commission broadened its offer to include all industrial goods, a spokesperson confirmed, reflecting the increased urgency and scope of the talks.

“We prefer to have a negotiated solution,” von der Leyen reiterated, making clear that the Commission is ready to deploy “all instruments” at its disposal should retaliation become necessary. Among these is the anti-coercion tool introduced in 2023, which has not yet been activated.

She condemned the tariffs as a “major turning point for the United States,” warning that they would bring “immense costs” to American consumers and companies, and deal a “massive” blow to the global economy.

Although the US has defended the tariffs as “reciprocal,” the European Commission has rejected this rationale, calling it “neither credible nor justified.”

Von der Leyen also unveiled plans to launch a specialized task force to track changes in global trade flows.

“We will also protect ourselves against indirect effects through trade diversion. For this purpose, we will set up an ‘Import Surveillance Task Force’,” she announced. “We look at what are the historical imports that we have and had and (whether) there is any specific surge all of a sudden of a certain product or in a certain sector that we have to act on.”