EU proposes to US to eliminate tariffs on industrial goods
7 April 2025, Brussels – The European Commission has made a formal proposal to the United States of America to completely eliminate tariffs on industrial goods between the two countries. This was made clear by Commission President Ursula von der Leyen during a joint press conference with Norwegian Prime Minister Jonas Gahr Støre.
"Europe is always ready for a good deal. That's why we are proposing a zero-for-zero scheme on industrial tariffs, which we have already successfully implemented with many of our trading partners," von der Leyen said.
The proposal comes against the backdrop of new unilateral trade measures by US President Donald Trump. From April 9, the US will impose a 20% tariff on almost all EU imports, with the rate reaching 25% for steel, aluminium and cars. In total, more than €380 billion in EU exports will be affected by the new tariffs.
Potential escalation of trade tensions
In response, the European Commission has said it prefers negotiations but is ready to take countermeasures if no agreement is reached. Possible actions include using the Anti-Coercion Instrument, adopted by the EU in 2023, which allows for restrictions on US companies' access to public procurement in Europe.
Trade ministers from the 27 EU member states have already approved a first package of retaliatory tariffs, which will come into effect on April 15. A second wave of sanctions is also being discussed, targeting imports worth up to $28 billion. Among the goods affected are consumer and industrial products, with tariffs on whiskey and diamonds even being considered.
Risk of trade diversion to Europe
The European side also expresses concern that the new US tariffs on countries in Asia – reaching 54% for China – could lead to a redirection of cheap, subsidized goods to the European market. Therefore, the Commission announced the creation of a special working group – Import Surveillance Task Force, which will monitor sharp increases in imports in certain categories.
Historical context
The idea of zero-for-zero tariffs between the EU and the US is not new – it was part of the negotiations for the Transatlantic Trade and Investment Partnership (TTIP) agreement, which was frozen during Trump’s first term. While industrial goods, such as cars and chemicals, are not particularly contentious, disagreements on agriculture and regulations then thwarted agreement.
Conclusion
The EU's position remains clear - openness to dialogue, combined with readiness to defend European interests. Negotiations with the US will be decisive not only for the future of transatlantic trade, but also for global economic flows in the context of growing protectionist measures.
The Ruse Chamber of Commerce and Industry will closely monitor the development of the negotiations and the potential impact on Bulgarian companies with foreign trade activities. The organization remains at the disposal of its members and partners for additional information and support.
Sources:
- Verhelst, K. (2025, April 7). EU offers Trump removal of all industrial tariffs. Politico.
- Liboreiro, J. (2025, April 7). Von der Leyen offers Trump 'zero-for-zero' tariffs deal on all industrial goods. Euronews.
- Blenkinsop, P. (2025, April 7). The EU would rather negotiate US tariffs, but will start collecting duties in one weekReuters.
Note: This publication was created with the support of generative artificial intelligence, with the content revised and adapted by the author to ensure compliance with the context of the news.
