The EU has proposed scrapping tariffs on all industrial items traded with the US, in a last-minute bid to stave off the American “reciprocal duties” set to enter into pressure this week.
European Fee President Ursula von der Leyen advised reporters that the “zero-for-zero” provide exhibits Brussels is “prepared to barter” with Washington, which introduced sweeping tariffs on all US buying and selling companions final week, together with a 20% levy on the EU.
A minimal 10% obligation took impact on Saturday, whereas all different tariffs – a few of which vary as excessive as 50% – are set to enter into pressure on Wednesday.
“We now have supplied zero-for-zero tariffs for industrial items, as we’ve got efficiently performed with many different buying and selling companions,” von der Leyen stated on Monday, including that the provide will probably be stored “on the desk” as “Europe is at all times prepared for a very good deal”.
EU Commerce Commissioner Maroš Šefčovič subsequently clarified that the “zero-for-zero” provide prolonged to automobiles, prescription drugs, rubber, plastic, equipment, and different industrial merchandise.
He added that the provide was initially made in mid-February throughout a gathering together with his US counterparts, Commerce Secretary Howard Lutnick and Commerce Consultant Jamieson Greer.
Šefčovič additionally travelled to the US for talks with Lutnick and Greer final month and held a “frank” two-hour video name with each on Friday.
Trump has repeatedly criticised the EU’s 10% automobile import tax, which is 4 instances increased than the US price of two.5%, and imposed 25% tariffs on vehicle, metal, and aluminium imports.
He additionally threatened to introduce levies on a variety of different particular person sectors, together with prescription drugs, semiconductors, and lumber.
The EU has increased import obligation charges than the US in different key export-dependent sectors, akin to chemical substances.
Nevertheless, the bloc’s common tariff of three.5% is barely decrease than the US price of three.95%, in accordance with Dutch financial institution ING.
The EU proposal’s announcement comes after Trump ally and tech mogul Elon Musk stated over the weekend that, “ideally,” there could be a “zero-tariff state of affairs” between the EU and the US.
The feedback have been later slammed as “ridiculous” by Germany’s outgoing Financial system Minister, Robert Habeck, including that Musk’s remarks have been “an indication of weak point” and advised that the Tesla proprietor is “afraid” of the tariffs’ impression on his companies.
Retaliation looms
Brussels is presently finalising the listing of products focused by its response to the US metal and aluminium duties. The listing is predicted to be offered for approval by member states on Wednesday.
Šefčovič stated that the focused imports will probably be lower than the €26 billion in US items initially proposed by the Fee.
“We have been listening very rigorously to our member states,” he stated, including: “We aren’t within the enterprise of tit-for-tat, or penny for penny.”
The EU can be presently mulling potential retaliatory measures to the car and the reciprocal duties.
France is pushing for US digital providers to be focused, however that is fiercely resisted by Eire, the place many US tech companies, together with Apple, Google, Microsoft, and Meta, have their European headquarters.
The Fee has stated that “all choices are on the desk” however has not confirmed that providers will essentially be focused.
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