The EU commission has offered a new deal to Donald Trump amid the currently ongoing tariff war enhanced by the US president who put tariffs on most global nations on April 2.
Trump had initially threatened the EU
The back and forth taxes and tariffs argument between the US and the European Union started when Trump threatened to impose a 200% tariff on specific EU goods in March if it didn’t remove a ‘nasty’ tax on whisky, as reported by BBC.
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Trump’s threat was a response
The threat to crank up tariffs on the EU was in response to the EU increasing their taxes in retaliation to the US adding a 25% tariff on aluminum and steel imports at the time.
So the US and the EU have been increasingly going back and forth with imposed taxes and tariffs since March.
Then Trump’s ‘Liberation Day’ tariffs kicked in
After this, Donald Trump’s ‘Liberation Day’ tariffs came into play, with the US president announcing tariffs of varying percentages on almost all nations across the globe on April 2.
The European Union got an additional 20% tariff on all its goods entering the US.
The EU are making an offer to the US
While some nations like China seem to be willing to take on a trade war with the US, European Union nations are instead making further trade offers.
The President of the European Union commission, President von der Leyen, made a major offer to Donald Trump, one that could change the game if taken.
A press statement from the EU commission revealed the offer
In a press statement shared by the EU commission on Monday April 7, President von der Leyen and Norwegian Prime Minister Jonas Støre revealed that they have ‘’discussed the effects of US tariffs’.
The statement acknowledged the cost of tariffs
In part, the statement read, “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.”
The EU commission offered a zero-for-zero tariffs on industrial goods
The statement continued on the offer proposed to the US, “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.”
But the offer didn’t come without warning
The offer of zero-for-zero tariffs on industrial goods didn’t come from the EU without a warning, as the statement noted it was “also prepared to respond through countermeasures and defend our interests”, as reported by The Guardian.
“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’,” it added.
The EU says it will work to minimise effects on trade
“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,” the statement continued.
“[…] 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.”
But Trump doesn’t seem to like the offer
Although a zero-for-zero tariffs on industrial goods might be worth considering, the US president doesn’t seem too keen on the idea.
Trump told reporters outside the White House that the EU would need to buy $350 billion of American energy and that he would only consider the offer if it put ‘America first’.
