EU Offers 'Zero-For-Zero Tariffs' To Trump Amid Pushback From France, Germany

Last Updated:April 07, 2025, 18:57 IST

EU trade ministers met for the first time on Monday at a bloc-wide level to discuss Trump's tariffs. The EU seeks to avoid a trade war even as France called for aggressive policies.

European Commission President Ursula von der Leyen. (Reuters File Image)

European Commission President Ursula von der Leyen said she had offered the United States “zero-for-zero tariffs" for industrial goods after US President Donald Trump’s tariff blitzkrieg rattled global markets and ushered in a new era of economic uncertainty.

“We stand ready to negotiate with the United States. 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," she said, adding that this deal was made before Trump announced reciprocal tariffs.

This came as EU trade ministers met for the first time at a bloc-wide level to discuss Trump’s sweeping tariffs on different countries that have roiled global trade. Trump said he would slap 20 percent tariffs on EU goods, and the European bloc said it would respond with countermeasures should negotiations fail.

The ministers’ discussions will focus on preparing “our next move in relation vis-a-vis the United States but also how to prepare our trading system back in the European Union to prevent eventual trade diversion", said EU trade chief Maros Sefcovic.

Divergences have remained in the EU’s approach, with France and Germany advocating the targeting of US tech and other services. However, this approach has drawn fire from Ireland, which relies heavily on US investment, particularly in the pharmaceutical and tech sectors.

What Do France, Germany Want?

Before the talks in Luxembourg, France’s trade minister urged the EU not to rule out an “extremely aggressive" trade response to Trump. Backed by Germany and Austria, France has been pushing for the EU to consider targeting US services, particularly tech.

This came after French President Emmanuel Macron urged businesses in the EU to halt spending on the US. “What would the message be of having big European players that invest billions in the American economy at the same time they are hitting us," he said, describing Trump’s tariffs as “brutal and unfounded".

France and Germany have specifically raised the possibility of deploying a new tool called the anti-coercion instrument (ACI), a trade weapon that has never been used and has been dubbed a “bazooka".

However, if Trump took the bloc’s surplus in goods with the United States — meaning it exports more than it imports — as his reasoning for hurting the EU, officials have indicated Brussels could target the US services surplus in response.

Such a move would mean the EU joining China and Canada in imposing retaliatory tariffs on the United States in an early escalation of what some fear will become a global trade war, making goods more expensive for billions of consumers and pushing economies around the world into recession.

(with inputs from agencies)

Brussels, Belgium

News world EU Offers 'Zero-For-Zero Tariffs' To Trump Amid Pushback From France, Germany