The EU has proposed scrapping tariffs on all industrial goods traded with the US, in a last-minute bid to stave off the American “reciprocal duties” set to enter into force this week.

European Commission President Ursula von der Leyen told reporters that the “zero-for-zero” offer shows Brussels is “ready to negotiate” with Washington, which announced sweeping tariffs on all US trading partners last week, including a 20% levy on the EU.

A minimum 10% duty took effect on Saturday, while all other tariffs – some of which range as high as 50% – are set to enter into force on Wednesday.

“We have offered zero-for-zero tariffs for industrial goods, as we have successfully done with many other trading partners,” von der Leyen said on Monday, adding that the offer will be kept “on the table” as “Europe is always ready for a good deal”.

EU Trade Commissioner Maroš Šefčovič subsequently clarified that the “zero-for-zero” offer extended to cars, pharmaceuticals, rubber, plastic, machinery, and other industrial products.

He added that the offer was initially made in mid-February during a meeting with his US counterparts, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.

Šefčovič also travelled to the US for talks with Lutnick and Greer last month and held a “frank” two-hour video call with both on Friday.

Trump has repeatedly criticised the EU’s 10% car import tax, which is four times higher than the US rate of 2.5%, and imposed 25% tariffs on automobile, steel, and aluminium imports.

He also threatened to introduce levies on a range of other individual sectors, including pharmaceuticals, semiconductors, and lumber.

The EU has higher import duty rates than the US in other key export-dependent sectors, such as chemicals.

However, the bloc’s average tariff of 3.5% is slightly lower than the US rate of 3.95%, according to Dutch bank ING.

The EU proposal’s announcement comes after Trump ally and tech mogul Elon Musk said over the weekend that, “ideally,” there would be a “zero-tariff situation” between the EU and the US.

The comments were later slammed as “ridiculous” by Germany’s outgoing Economy Minister, Robert Habeck, adding that Musk’s remarks were “a sign of weakness” and suggested that the Tesla owner is “afraid” of the tariffs’ impact on his businesses.

Retaliation looms
Brussels is currently finalising the list of goods targeted by its response to the US steel and aluminium duties. The list is expected to be presented for approval by member states on Wednesday.

Šefčovič said that the targeted imports will be less than the €26 billion in US goods initially proposed by the Commission.

“We’ve been listening very carefully to our member states,” he said, adding: “We are not in the business of tit-for-tat, or penny for penny.”

The EU is also currently mulling potential retaliatory measures to the automobile and the reciprocal duties.

France is pushing for US digital services to be targeted, but this is fiercely resisted by Ireland, where many US tech firms, including Apple, Google, Microsoft, and Meta, have their European headquarters.

The Commission has said that “all options are on the table” but has not confirmed that services will necessarily be targeted.

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