The European Union (EU) offered the United States a "zero for zero" tariff agreement for all industrial goods on Monday, in an attempt to curb the escalating trade tensions caused by the new tariff policy of President Donald Trump.
The President of the European Commission, Ursula von der Leyen, confirmed the proposal but warned that the bloc is prepared to implement countermeasures if Washington does not respond favorably.
The European Commissioner for Trade, Maros Sefcovic, explained that the offer seeks to lay the groundwork for constructive long-term dialogue and to avoid a trade war. However, according to EFE, he admitted that currently he does not see a genuine willingness for dialogue from the U.S., which has already begun to impose tariffs of 25% on European products such as steel and aluminum.
In response, Brussels announced it will send EU member states a list of American products that will be subject to new tariffs starting April 15, with a first wave, and a second on May 15. The sectors most affected include chemicals, pharmaceuticals, automotive, and machinery.
Von der Leyen emphasized that the EU not only defends its interests against tariffs but will also take measures to prevent trade diversion through an import surveillance group. Furthermore, she stated that all instruments are on the table, including the tool against economic coercion.
The Spanish minister Carlos Cuerpo emphasized the EU's willingness to engage in dialogue, stating that this proposal reflects a clear intention to strengthen the transatlantic relationship.
Meanwhile, the markets reacted with alarm. The stock exchanges in Asia and Europe experienced sharp declines this Monday due to fears of a global recession, fueled by reciprocal tariffs between powers. The Japanese Nikkei plummeted by 7.8%, and Frankfurt lost 7.86%, amid warnings that the crisis could spread and severely impact emerging economies and international trade.
Frequently Asked Questions about the "zero for zero" tariff proposal between the EU and the U.S.
What does the European Union propose to the United States regarding tariffs?
The European Union has proposed a "zero for zero" tariff agreement to the United States for all industrial goods. This measure aims to curb the escalation of trade tensions caused by President Donald Trump's tariff policy.
How has the EU responded to the tariffs imposed by the U.S.?
Brussels has announced that it will send a list of American products that will be subject to new tariffs. The EU is prepared to implement countermeasures if the U.S. does not respond favorably to its "zero for zero" tariff proposal.
Which sectors will be most affected by the new EU tariffs?
Among the sectors most affected by the new EU tariffs on American products are chemicals, pharmaceuticals, automotive, and machinery. These sectors will face additional duties in response to the U.S. tariffs on European products.
What has been the impact of trade tensions on financial markets?
Commercial tensions have raised alarms in financial markets, causing significant declines in stock exchanges across Asia and Europe. The Japanese Nikkei plummeted by 7.8% and Frankfurt lost 7.86%, reflecting fears of a global recession.
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