European Union (EU) Commission President Ursula von der Leyen has announced that the bloc has offered President Donald Trump a major trade deal for “zero-for-zero tariffs” on industrial goods.
Von der Leyen revealed that the EU is now seeking the historic arrangement in order to avoid a full-blown trade war with the United States.
While the EU leader condemned the reciprocal tariff measures imposed by the U.S., the news is a massive victory for President Trump.
Fears of a trade war fueled dips in global stock markets on Monday morning opening.
However, stocks have been steadily climbing again through Monday, with the news from the EU undoubtedly restoring confidence in Trump’s economic plan among investors.
Trump’s plan to rectify the long-standing transatlantic trade imbalance has now begun to take shape.
Von der Leyen and other top eurocrats’ willingness to negotiate with the White House will likely trigger other nations to follow suit.
“We stand ready to negotiate with the US,” the EU president said.
“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.”
However, von der Leyen, a former World Economic Forum (WEF) board member, did not address other significant areas of concern expressed by the Trump administration.
The German politician failed to mention restrictions on American food imports or, perhaps more significantly, on EU tariffs against U.S.-made automobiles.
Currently, tariffs on American vehicles stand at around four times the rate European cars are taxed when sent to the United States.
Von der Leyen warned that Brussels is “prepared to respond through countermeasures and defend our interests if the trade dispute continues.”
The EU chief said that Brussels will take a two-pronged approach toward the Trump tariffs.
Firstly, the EU would reduce internal barriers within the bloc — as opposed to reducing further barriers with the U.S.
Secondly, the EU would begin “diversifying” Europe’s trading partners.
“This is why we are deepening our relations with our trading partners: You know the deals we have done with Mercosur, Mexico, Switzerland, and we are working with India, Thailand, Malaysia, Indonesia and many others,” she said.
“With that, we want to be very clear: Europe stands together for our businesses and with our businesses for all Europeans in the European Union and beyond.”
Meanwhile, speaking separately at a meeting of economic ministers in Luxembourg, the EU’s top trade envoy, Maroš Šefčovič, said that the “current trade situation with the United States, our most significant partner, is in a tough spot.”
The Slovak politician said that an estimated 70 percent of EU exports to the United States, or around €380 ($414) billion, are facing tariffs between 20 and 25 percent.
Šefčovič said this would amount to €80 billion in duties taken by Washington, up from the €7 billion previously taxed.
The tariffs’ shock continued to rock European markets on Monday.
The Eurostoxx 600 index fell by about five percent by midday.
This perhaps acted as an impetus for the Eurocrats to make overtures to the Trump White House to stem the bleeding.
Like von der Leyen, Šefčovič offered up some potential areas of cooperation.
The “EU-US trade relationship could benefit from a fresh look and a boost in strategic areas,” Šefčovič said.
“We face similar challenges, for instance, global overcapacities driven by non-market practices, the race for leadership in semiconductors, or securing critical minerals.
“If we team up, we could build a truly transatlantic marketplace that benefits both sides.”
Yet, the Eurocrat also spoke of a “paradigm shift” in which Europe should look beyond the United States, calling for increased “diversification” through strengthening trade ties with countries like India, Indonesia, Thailand, the Philippines, and the Gulf states.
Šefčovič also spoke of “rebalancing” the bloc’s trading relationship with Communist China.
China currently stands as the EU’s top importer, with a trade imbalance of €292 ($318) billion.
Mirroring some of the demands the United States has made on the EU, which has a €197 ($215) billion trade surplus with America, Šefčovič said that Brussels will push Beijing to increase market access for European companies in China and to “level the playing field for EU companies in China.”
Meanwhile, Trump has held firm on his commitment to rebalancing global trade back in favor of the United States.
In a Sunday evening post on Truth Social, Trump wrote:
“We have massive Financial Deficits with China, the European Union, and many others.
“The only way this problem can be cured is with TARIFFS, which are now bringing Tens of Billions of Dollars into the U.S.A.
“They are already in effect and a beautiful thing to behold.
“The Surplus with these Countries has grown during the ‘Presidency’ of Sleepy Joe Biden.
“We are going to reverse it, and reverse it QUICKLY.
“Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!”
READ MORE – Seafood Harvesters Praise Trump Tariffs as ‘Lifeline’ for Struggling Industry
