The European Union has offered the United States a zero-for-zero tariff deal on industrial goods, aiming to defuse escalating trade tensions.European Commission President Ursula von der Leyen announced the proposal, emphasizing the EUs readiness for fair trade agreements while preparing countermeasures if talks fail.This proposal follows recent United States tariff hikes under President Donald Trump.
These include a 20% levy on EU goods and a 25% tariff on steel, aluminum, and vehicles.These measures impact 380 billion worth of EU exports to the United States , about 70% of the blocs total exports.
The tariffs have disrupted global markets, with European stock indices dropping nearly 6% before partial recovery.Von der Leyen described the EUs offer as consistent with deals made with other partners and a chance to strengthen transatlantic trade.
However, she warned that Europe would defend its interests if negotiations stall.EU Proposes Zero Tariffs to Ease Trade Tensions with United States (Photo Internet reproduction)The EU is preparing retaliatory tariffs on United States products like motorcycles, bourbon, orange juice, and jeans, potentially targeting 6 billion in imports.
Consultations are underway to identify additional goods worth 18 billion for further measures.The United States administration has expressed skepticism toward the proposal, citing non-tariff barriers.
These include Europes value-added tax system and strict regulations, which are seen as obstacles.Meanwhile, Trumps tariffs have sparked concerns over supply chain disruptions and rising protectionism globally.
The EUs dual approachoffering dialogue while preparing countermeasureshighlights its determination to safeguard economic stability.This comes amid growing trade conflicts.
This move underscores the broader implications of United States -EU trade relations for global commerce and market stability.