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BRUSSELS – European Commission President Ursula von der Leyen has extended a bold offer to the United States, proposing “zero-for-zero” tariffs on industrial goods, as Europe seeks to de-escalate trade tensions with Washington.
In a press briefing held in Brussels on April 7, 2025, von der Leyen stated that the European Union is “always ready for a good deal,” signaling Europe’s readiness to negotiate terms that would benefit both sides. The proposal comes as the EU continues to face heavy tariffs from the US, including 20% on certain products and 25% on steel, aluminum, and derivatives.
“We are prepared to respond with countermeasures if necessary,” von der Leyen added, reaffirming Europe’s commitment to protecting its interests amid ongoing trade frictions.
The Context: Trump’s Tariff Stance and Its Impact
The offer to reduce tariffs marks a significant move in the ongoing trade dispute between the EU and the US. Former US President Donald Trump had previously singled out the European Union as one of the “worst offenders” in global trade, prompting the introduction of punitive tariffs on European goods.
Under the current trade terms, the EU faces tariffs on a wide range of goods, which has strained the economic relationship between the two economic powerhouses. With both sides looking to protect domestic industries, von der Leyen’s “zero-for-zero” offer could be a way to reset trade relations and pave the way for broader negotiations.
What Is ‘Zero-for-Zero’ and How Would It Work?
The term “zero-for-zero” suggests a mutually beneficial arrangement in which both sides agree to remove or significantly reduce tariffs on certain industrial goods. This would be aimed at facilitating smoother trade between the US and the EU while avoiding further escalation.
Von der Leyen emphasized that the proposal is a “goodwill gesture” but reiterated that the EU is prepared to take countermeasures if the US does not reciprocate. The EU’s readiness to protect itself from “indirect effects” of trade diversion – where companies shift production or supply chains to other countries to avoid tariffs – is also a key consideration.
What’s Next for US-EU Trade Negotiations?
With tensions still high between the US and EU, this offer represents a potential turning point. It remains to be seen whether Washington will accept the proposal or push back on further trade discussions. In either case, Europe’s willingness to engage in talks signals a desire to de-escalate trade tensions, but von der Leyen’s comments also make clear that Europe will defend its interests vigorously.
As the world’s largest economy, the US holds significant sway over international trade policies, and any moves toward reducing tariffs could have ripple effects on global markets. A successful negotiation could potentially usher in a new era of cooperation between the EU and US, but hurdles remain.
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