European Union Proposes Zero-Tariff Deal for US Industrial Goods

Ursula von der Leyen, President, European Commission, has underscored the European Union’s commitment to open, fair trade by spotlighting its proposal for a zero-for-zero tariff agreement on industrial goods as the centerpiece of its strategic response to the latest US tariff hike. Speaking at a press conference, von der Leyen called the tariffs a “major turning point” for the United States and warned of their global consequences, particularly for developing economies.

“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,” says von der Leyen.

Despite the escalating trade tensions, von der Leyen reiterated the European Union’s willingness to negotiate, noting that the EU has proposed a zero-for-zero tariff arrangement on industrial goods — an approach that has proven successful with other global trading partners.

“Europe is always ready for a good deal. So we keep it on the table. But we are also prepared to respond through countermeasures and defend our interests,” says von der Leyen.

To counteract both the direct and indirect effects of the tariffs, the European Commission will launch an Import Surveillance Task Force. The unit will work closely with industry stakeholders to monitor trade patterns and gather evidence to inform future policy measures. The initiative is aimed at preventing trade diversion and ensuring the integrity of the Single Market.

Von der Leyen’s announcement followed a series of high-level meetings with key representatives from the region’s industrial base. In just the past day, she met with executives and associations from the steel, aluminium, and manufacturing sectors, including: Eurofer, European Aluminium Association, ThyssenKrupp Steel Europe, Tata Steel Europe, Salzgitter, SSAB, Celsa Group, Arvedi Group, Stegra, GravitHy, Aperam, BusinessEurope, and SME United. She also plans to meet with representatives from the automotive sector and the pharmaceutical industry.

Beyond immediate countermeasures, von der Leyen lays out a broader vision focused on strengthening the region’s internal market and diversifying global trade partnerships. “We will focus like a laser beam on the 83% of global trade that is beyond the US,” she says.

The EU has already sealed trade agreements with Mercosur, Mexico, and Switzerland, and is actively pursuing deals with India, Thailand, Malaysia, and Indonesia, among others. These efforts aim to reduce dependency on any single trading partner while creating new growth channels for European businesses.

“Europe stands together for our businesses and with our businesses for all Europeans in the European Union and beyond,” says Von der Leyen.

Update:

This afternoon Trump rejected the zero-for-zero tariff proposal. During a press conference, Trump criticized the arrangement and called it insufficient. He said that the European Union was created to gain a trade advantage over the United States, forming a “monopoly-like” bloc to counter US interests. Trump then claimed that the European Union has long been tough on US trade, citing imbalances such as the few US car exports to the European Union compared to the millions of EU vehicles imported into the United States. He also highlighted barriers to US agricultural products. 

Trump tied these issues to broader concerns about NATO, stating that the United States has historically funded the EU defense. He also pointed to the US trade deficit with the European Union — around US$350 billion — and suggested it could be reduced if the European Union committed to buying more US energy.