Europe 'ready to negotiate' with US, offers zero tariffs on industrial goods

European Commission President Ursula Von der Leyen on Monday said that the European Union is “ready to negotiate” with the US and has offered to scrap tariffs on industrial goods.

“These tariffs come first and foremost at immense costs for US consumers and businesses but, at the same time, they have a massive impact on the global economy,” CNN quoted the head of the EU’s executive arm as saying at a news conference in Brussels.

After US President Donald Trump’s announcement of substantial tariffs on numerous countries last week, EU exports to the US will incur a 20% “reciprocal” tariff, with the steel and auto industries facing a 25% tariff.

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Von der Leyen said these tariffs, which have triggered a global market downturn, mark a “major turning point”  for the US.

“Nonetheless, we stand ready to negotiate with the United States. Indeed, 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,” she was quoted as saying.

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

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When asked about the timing of the EU’s zero-tariff offer, von der Leyen said it was proposed “long before” Trump’s recent tariff announcement and had been made “repeatedly, particularly in the automotive sector.”

She emphasised that the EU has consistently offered “zero for zero” to other countries with strong automotive industries.

At the same time, the EU is ready to take a tough stance: while it prefers a “negotiated settlement,” the bloc is also “preparing a potential list of US imports for retaliation,” she added.

Moreover, the head of the EU’s executive arm mentioned that the bloc would seek new opportunities, highlighting existing agreements with Mexico and Switzerland, as well as potential trade deals with India, Indonesia, and other Indo-Pacific nations.

“We will focus like a laser beam on the 83% of global trade that is beyond the United States – vast opportunities – and this is why we’re deepening our relations with our trading partners,” CNN quoted von der Leyen as saying.

Reacting to EU’s zero-tariff offer, White House trade adviser Peter Navarro said that the European Union will have to significantly reduce its non-tariff barriers, including value-added tax (VAT), if it wants to negotiate lower US tariffs imposed by President Trump.

Navarro, speaking to CNBC television, described the EU’s willingness to discuss tariff reductions as “a good, small start” but stressed that non-tariff barriers, such as VAT and stringent food safety regulations, present a far greater obstacle to fair trade.

“EU, drop your 19% VAT. EU, respect WTO decisions and allow us to sell our pork, our corn, our beef,” he was quoted as saying, emphasising the role of VAT as a trade barrier.

With inputs from agencies