President Trump rejected a proposal put forth by the European Union on Monday that aimed to eliminate tariffs on industrial goods on both sides, dismissing the offer as insufficient to warrant lifting the current 20% import duties.
“The EU has been very tough over the years,” Trump told reporters in the Oval Office when asked about the proposal. “It was formed to really do damage to the United States in trade.”
“They don’t take our cars, like Japan in that sense. They don’t take our agricultural product; they don’t take anything practically,” he continued.
Highlighting the imbalance in trade, Trump stated, “We have a [trade] deficit with the European Union of $350 billion — and it’s going to disappear fast,” adding that a key way to address the disparity would be for the EU to start purchasing American energy exports. “And one of the ways that that can disappear easily and quickly is they’re going to have to buy our energy from us.”
In response to a question about whether the sweeping global tariffs introduced on Saturday were meant as a strategic move to invite future discussions, Trump was clear in his position: “We’re not looking at that.”
Explaining his broader approach to trade, Trump said, “We have very many countries that are coming to negotiate deals with us. And they’re going to be fair deals,” emphasizing that some nations would face “substantial tariffs” as part of those agreements.
“This is America First,” he declared. “There can be permanent tariffs, and there can also be negotiations.”
Trump argued that this moment represents a rare opportunity to fundamentally change the terms of global trade in America’s favor. “It’s the only chance that we will have to reset the table,” he said, citing the closure of 90,000 American manufacturing plants since the implementation of NAFTA in 1994.
European leaders had earlier in the day detailed their own initial offer to ease trade tensions by proposing to scrap tariffs on various industrial goods, including items like plastics, rubber, cars, machinery, chemicals, and pharmaceuticals.
“We have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners,” said European Commission President Ursula von der Leyen.
“Because Europe is always ready for a good deal. So we keep it on the table,” she added during a joint press appearance with Norwegian Prime Minister Jonas Gahr Støre.
“We stand ready to negotiate with the US,” von der Leyen affirmed. “We are also prepared to respond through countermeasures and defend our interests.”
EU Trade Commissioner Maroš Šefčovič of Slovakia noted that the idea of zero tariffs on industrial products had already been floated to U.S. officials, including Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer, back on February 19.
“Right now we are in the early stages of discussions, because the US views tariffs not as a tactical step, but as a corrective measure,” Šefčovič said Monday.
Despite efforts at diplomacy, European officials have not dismissed the possibility of retaliatory actions in response to Trump’s previously enacted 25% tariffs on steel and aluminum.
Since Trump’s “Liberation Day” announcement on April 2, which unveiled a new 10% global tariff base rate and set the stage for higher duties starting April 9, markets worldwide have experienced a steep decline.
Trump, 78, also enacted a 25% tariff on all foreign-made vehicles entering the United States.
While the EU’s average tariff on agricultural goods from outside the U.S. stands at just 1.6%, American-made cars face a 10% duty when exported to Europe.
The STOXX Europe 600 index opened with a sharp 6% drop on Monday but regained some ground to end the day down just 2.9%, helped in part by von der Leyen’s conciliatory remarks.
Over the weekend, Department of Government Efficiency head Elon Musk expressed cautious optimism that trade talks could lead to a better outcome. “I hope that the United States and Europe can establish a very close partnership,” said the Tesla and SpaceX CEO, “effectively creating a free-trade zone between Europe and North America.”
Such a deal was close to fruition during President Obama’s second term, but negotiations were derailed after Greenpeace leaked sensitive documents, sparking a wave of public resistance.
Further complications arose from fundamental disagreements over food safety standards between the two sides.
Talks for the Transatlantic Trade and Investment Partnership formally collapsed during Trump’s first term in 2019.
{Matzav.com}