European Commission President Ursula von der Leyen announced that the bloc offered President Donald Trump a deal concerning tariffs on industrial goods.
Von der Leyen said at a press conference (emphasis mine):
These tariffs come first and foremost at immense costs for US consumers and businesses. But at the same time, they have a massive impact on the global economy. Developing countries are hit especially hard. This is a major turning point for the United States. Nonetheless, we stand ready to negotiate with the US. 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. So we keep it on the table. But we are also prepared to respond through countermeasures and defend our interests. And in addition, we will also protect ourselves against indirect effects through trade diversion. For this purpose, we will set up an ‘Import Surveillance Task Force’. We will work with industry to make sure we have the necessary evidence base for our policy measures. We will stay in very close contact to minimise effects of our actions on each other.
According to EU Trade Commissioner Maroš Šefčovič, the industrial goods include “cars and all other industrial goods, such as chemicals, pharmaceuticals, rubber and plastic machinery.”
German Finance Minister Jörg Kukies called for zero tariffs on imports: “The easiest way to assure balance and fairness is if everyone goes to zero and then we have free trade, efficiency, and economies of scale. The key is to send the signal that we are willing to include reducing tariffs all the way to zero.”
Look, the criticism of Trump’s tariffs is 100% legitimate. Tariffs are awful. It is a YUGE risk to use them as a negotiating tactic. I will always say the best way to bring manufacturing back to America is to cut the red tape and regulations and offer tax breaks and incentives.
Julian Hinz of the Kiel Institute for the World Economy agreed with Kukies. From DW:
“Dropping tariffs bilaterally between the US and the EU most definitely would be the best outcome. Having cheaper trade between those two economies would benefit both of them, whereas the flip side, if we have tariffs, 20% on each side, that increases costs for both sides. Import tariffs are an import tax that can be lowered very quickly, very easily.”On the day he announced the new measures, US President Donald Trump suggested he could be open to “zero tariffs.””To all of the foreign presidents, prime ministers, Kings, Queens, ambassadors, and everyone else who will soon be calling to ask for exemptions from these tariffs, I say terminate your own tariffs, drop your barriers.”
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