The European Union Commission has disclosed the terms of an agreement it proposed to Donald Trump amidst the ongoing tariff dispute, which has proven effective with “many other trading partners.”
In March, Trump threatened to impose 200 percent tariffs on certain EU goods unless a “nasty” tax on whisky was removed. This threat was a reaction to the EU increasing tariffs in response to the U.S. imposing 25 percent tariffs on steel and aluminum imports.
Later, on what was termed “Liberation Day,” Trump celebrated the revival of American industry by further increasing tariffs on countries worldwide, including a 20 percent hike on EU goods.
Despite this, the EU seems to be extending an olive branch to the U.S.
In a press release yesterday (April 7), President von der Leyen and Norwegian Prime Minister Jonas Støre discussed the impact of U.S. tariffs. Von der Leyen stated, “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. Developing countries are hit especially hard. This is a major turning point for the United States.”
She added, “Nonetheless, we stand ready to negotiate with the US. 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. So we keep it on the table.”
The statement also includes a cautionary note.
The EU asserts it is “prepared to respond through countermeasures and defend our interests.” The statement concluded, “And in addition, we will also protect ourselves against indirect effects through trade diversion. For this purpose, we will set up an ‘Import Surveillance Task Force’.
“We will work with industry to make sure we have the necessary evidence base for our policy measures. We will stay in very close contact to minimise effects of our actions on each other.
“[…] We are discussing the response to the US but also the other two pillars of our strategy: the one is strengthening our Single Market, so getting rid of remaining barriers. The other pillar is diversifying our trade relations.”
However, Trump’s reaction to the EU’s proposal appears less than favorable. The President stated outside the White House that the EU would need to pledge to purchase $350 billion of American energy, and he would only consider a deal if it prioritized “America first.”