The European Union has tabled a proposal to the United States for a mutual elimination of tariffs on industrial goods, announced Ursula von der Leyen, President of the European Commission. The intent is to sidestep a potential trade war escalation.

Addressing the media with Norway’s Prime Minister, Jonas Gahr Støre, von der Leyen highlighted this “zero-for-zero” tariff initiative as part of Europe’s broader strategy to foster amicable trade relations. “Because Europe is always ready for a good deal. So we keep it on the table,” she remarked. This move revisits discussions similar to those held about a decade ago under the Transatlantic Trade and Investment Partnership (TTIP), which faltered during Donald Trump’s presidency.

Von der Leyen also responded to the recent imposition of a 20% tariff by Trump on the EU and other trading nations, triggering market shocks and massive financial losses worldwide. European markets, for instance, faced their steepest declines since the onset of the Covid pandemic on the announcement day.

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Despite market jitters, von der Leyen’s tone remained resolute and conciliatory. “We stand ready to negotiate with the U.S.,” she asserted. The current EU tariffs on U.S. non-agricultural products average at about 1.6%, except for a notable 10% on American automobiles, a rate applied solely to the US due to the incomplete TTIP talks.

EU Trade Commissioner Maroš Šefčovič clarified that the proposed zero-for-zero scheme could extend beyond cars to include a variety of industrial goods like chemicals, pharmaceutical products, and machinery. While open to negotiation, von der Leyen did not shy away from mentioning possible countermeasures if needed to protect European interests.

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In Luxembourg, EU’s 27 trade ministers convened to deliberate on the U.S.-imposed tariffs and the Commission’s planned counteractions. A firm response is on the agenda with Šefčovič revealing that the EU has prepared a “robust list” of potential retaliatory tariffs in response to the U.S.’s 25% duties on steel and aluminum, imposed earlier.

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European Union officials are also tackling broader strategic shifts as they adapt to global changes in trade and policy, with high-level meetings ongoing between EU trade representatives and their U.S. counterparts in Washington.