European Commission President Ursula Von der Leyen stated, “We are prepared to engage in negotiations with the United States. In fact, we have proposed a zero-for-zero tariff arrangement for industrial products, a strategy that has proven successful with numerous other trading partners, as Europe is consistently open to favorable agreements.”
European Commission President Ursula Von der Leyen stated on Monday that the European Union is prepared to engage in negotiations with the United States and has proposed eliminating tariffs on industrial products.
According to CNN, during a press conference in Brussels, she remarked that these tariffs impose significant costs on American consumers and businesses while also exerting a considerable influence on the global economy.
Following US President Donald Trump’s recent announcement of substantial tariffs affecting various countries, EU exports to the US will face a 20% “reciprocal” tariff, with the steel and automotive sectors subjected to a 25% tariff.
Von der Leyen characterized these tariffs, which have contributed to a downturn in global markets, as a “major turning point” for the United States.
“Nevertheless, we are prepared to negotiate with the United States. In fact, we have proposed zero-for-zero tariffs on industrial goods, as we have successfully done with numerous other trading partners, because Europe is always open to a favorable agreement,” she stated.
When questioned about the timing of the EU’s zero-tariff proposal, Von der Leyen clarified that it was suggested “long before” Trump’s recent tariff announcement and had been reiterated “particularly in the automotive sector.”
She underscored that the EU has consistently extended “zero for zero” offers to other nations with robust automotive industries.
Simultaneously, the EU is poised to adopt a firm approach: while it favors a “negotiated settlement,” the bloc is also “preparing a potential list of US imports for retaliation,” she noted.
Additionally, the head of the EU’s executive branch indicated that the bloc would pursue new opportunities, emphasizing existing agreements with Mexico and Switzerland, as well as potential trade agreements with India, Indonesia, and other nations in the Indo-Pacific region.
We will concentrate intensely on the 83% of global trade that lies outside the United States, which presents significant opportunities. This is the reason we are strengthening our relationships with our trading partners, as quoted by CNN from von der Leyen.
In response to the EU’s proposal for zero tariffs, White House trade adviser Peter Navarro stated that the European Union must make substantial reductions to its non-tariff barriers, including the value-added tax (VAT), if it seeks to negotiate lower tariffs imposed by President Trump.
Navarro, in an interview with CNBC, characterized the EU’s readiness to engage in discussions about tariff reductions as “a good, small start,” but he emphasized that non-tariff barriers, such as VAT and strict food safety regulations, pose a much larger challenge to equitable trade.
“EU, eliminate your 19% VAT. EU, adhere to WTO rulings and permit us to sell our pork, corn, and beef,” he was quoted as saying, highlighting the impact of VAT as a trade impediment.
