EU Proposes ‘Zero-for-Zero’ Tariff Deal with US Amid Rising Trade Tensions

Brussels, April 7, 2025 – In a bid to de-escalate mounting trade friction with the United States, the European Union has put forward a bold proposal to eliminate tariffs on industrial goods, offering a “zero-for-zero” resolution that could reshape transatlantic commerce. European Commission President Ursula von der Leyen announced the initiative on Monday, signaling the EU’s readiness to negotiate with the administration of U.S. President Donald Trump, whose recent imposition of sweeping tariffs has rattled global markets.

“We stand ready to negotiate with the United States,” von der Leyen declared during a press conference alongside Norwegian Prime Minister Jonas Gahr Støre. “We have offered zero-for-zero tariffs for industrial goods, as we have successfully done with many other trading partners, because Europe is always ready for a good deal.” The proposal, which extends to products like cars, pharmaceuticals, and machinery, aims to counter the 20% tariff levied by the U.S. on EU exports—a policy set to take effect on April 9, alongside broader duties targeting 185 countries.

The move comes as Trump’s trade strategy, which includes a 10% baseline tariff on all imports and higher rates for perceived trade offenders, has sparked fears of a global trade war. The EU’s offer, initially floated weeks before Trump’s latest tariff announcements, reflects a dual-track approach: a preference for dialogue paired with a warning of retaliatory measures if talks falter. EU Trade Commissioner Maroš Šefčovič emphasized that while negotiations are the priority “[the EU is] also prepared to respond through countermeasures and defend our interests.”

The proposal has drawn mixed reactions. Supporters, including business leaders and some U.S. commentators, see it as a potential offramp from escalating tensions. Kevin O’Leary, a prominent investor, called it a “huge opportunity” for the Trump administration to secure a win without further market disruption. However, White House trade adviser Peter Navarro downplayed the offer, arguing that non-tariff barriers—such as the EU’s value-added taxes and regulatory standards—pose a greater challenge than tariffs alone. “It’s a good, small start,” Navarro told CNBC, “but it’s the non-tariff cheating that matters.”

On the ground, the EU is already mobilizing countermeasures. A document obtained by Reuters reveals plans for 25% tariffs on a range of U.S. goods—from soybeans to dental floss—set to begin on April 15, with additional levies slated for May and December. EU member states are expected to vote on the proposal this Wednesday, underscoring the bloc’s readiness to strike back even as it extends an olive branch.

The stakes are high. With 70% of the EU’s $582 billion in annual exports to the U.S. now subject to Trump’s tariffs, European leaders face pressure to protect their economies without triggering further retaliation. Meanwhile, U.S. markets have plunged, with the S&P 500 entering bear market territory amid uncertainty over Trump’s endgame—whether a permanent protectionist shift or a high-stakes bargaining chip.

As the deadline looms, the EU’s “zero-for-zero” gambit tests the Trump administration’s willingness to pivot from confrontation to cooperation. For now, von der Leyen insists the offer remains on the table, a lifeline in a trade dispute that could redefine the global economic order. “Europe is always ready for a good deal,” she reiterated, leaving the ball firmly in Washington’s court. 17GEN4.com