EU Proposes 'Zero-for-Zero' Tariff Deal to Avert U.S. Trade War

The European Commission proposed a 'zero-for-zero' tariff deal to avoid a trade conflict with the U.S. as EU ministers prioritized negotiations and considered countermeasures. The EU plans tariffs on U.S. goods in response to President Trump's trade policies while opting for a dialogue to resolve the issue.

The European Commission proposed a 'zero-for-zero' tariff agreement in its attempt to avert an escalating trade conflict with U.S. President Donald Trump's administration. The move comes as EU ministers gathered to prioritize negotiations and prepare targeted retaliatory measures against U.S. tariffs.

During a meeting in Luxembourg, EU officials revealed their preference for diplomacy over confrontation, emphasizing negotiations to remove tariffs imposed by Trump on EU steel, aluminum, and more. However, should talks fail, the EU is set to approve counter-tariffs totaling up to $28 billion on American imports.

EU Trade Commissioner Maros Sefcovic underscored the bloc's readiness to employ its Anti-Coercion Instrument if necessary, allowing it to restrict U.S. services and tender access. As tensions rise, trade officials highlight the EU's united front as crucial in negotiations, with certain member states, particularly those heavily reliant on U.S. trade, urging a cautious approach.

(With inputs from agencies.)