In a high-stakes bid to de-escalate looming trade tensions, the European Commission has extended a proposal to the United States to eliminate tariffs on all industrial goods. Commission President Ursula von der Leyen announced the offer on Monday, presenting it as a pathway to avoid economic conflict. However, she made it clear that the European Union is fully prepared to retaliate if the U.S. refuses to engage.
The move comes in response to U.S. President Donald Trump’s sweeping tariff policy, which will impose a 20% duty on all EU imports starting April 9. Additionally, specific industries—including steel, aluminum, and automobiles—will face an even steeper 25% tariff, affecting over €380 billion in European exports.
“Europe is ready to negotiate with the US. We have offered zero-for-zero tariffs for industrial goods. Because we’re always ready for a good deal,” she said. However, she warned that if Washington refuses to engage, the EU is prepared to implement countermeasures using all available legal instruments, including its newly established anti-coercion framework.
Europe is ready to negotiate with the US.
We have offered zero-for-zero tariffs for industrial goods.
Because we’re always ready for a good deal.
But we’re also prepared to respond with countermeasures.
And protect ourselves against indirect effects through trade diversion. pic.twitter.com/hpZ77TXH4B
— Ursula von der Leyen (@vonderleyen) April 7, 2025
Brussels has tried to strike similar deals with the U.S. in the past, particularly regarding the automotive sector, but those efforts failed to gain traction. In a renewed push, the EU has expanded the scope of its offer, hoping to secure a broader agreement. However, with no clear response from Washington, concerns are growing over the potential for a full-scale trade war.
While European exports face steep barriers, several Asian countries have been hit even harder. The U.S. has imposed significantly higher tariffs on imports from Malaysia (24%), India (26%), Indonesia (32%), Thailand (36%), Vietnam (46%), Laos (48%), and Cambodia (49%). China, already subject to previous rounds of tariff hikes, now faces a staggering 54% levy on its exports to the U.S.
Von der Leyen also stressed that such policies would not only strain U.S.-EU trade but also inflict heavy costs on American consumers and businesses while sending shockwaves through the global economy.
