By Charles Switzer
2:00am PDT, Apr 9, 2025
Trump Rejects EU's 'Zero-for-Zero' Trade Proposal
On Monday, April 7, President
Donald Trump declined a European Union proposal for eliminating
tariffs on industrial goods, asserting the offer did not address the broader imbalance in trade, the
New York Post reported.
"The EU has been very tough over the years," Trump said from the Oval Office. "It was formed to really do damage to the United States in trade."
Trump went on to criticize the EU for its limited acceptance of U.S. goods: "They don't take our cars, like Japan in that sense. They don't take our agricultural product; they don't take anything practically."
Here's every major key point from Trump's EU response.
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Trade Deficit and Energy Exports at Center of Dispute
Donald Trump argued the U.S. runs a large trade deficit with the European Union and called for energy purchases as a remedy.
"We have a [trade] deficit with the European Union of $350 billion — and it's going to disappear fast," he said. "And one of the ways that that can disappear easily and quickly is they're going to have to buy our energy from us."
When asked by a reporter if his
newly imposed tariffs were a negotiation tactic, Trump replied, "We're not looking at that. We have very many countries that are coming to negotiate deals with us. And they're going to be fair deals. In certain cases, they're going to be paying substantial tariffs."
European Officials Promote Free Trade and Prepare for Countermeasures
EU leaders responded to Donald Trump's tariffs by reaffirming their openness to negotiation — while warning of
possible retaliation.
"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 said during a press event with Norwegian Prime Minister
Jonas Gahr Store.
Von der Leyen continued, "We stand ready to negotiate with the U.S. We are also prepared to respond through countermeasures and defend our interests."
Tariffs Trigger Market Volatility and Political Tension
Donald Trump's decision to move forward with a 10 percent global baseline tariff — plus elevated duties on specific imports — sparked
turbulence in financial markets.
The STOXX Europe 600 index dropped 6 percent on Monday before partially recovering.
EU Trade Commissioner
Maros Sefcovic said that talks with the U.S. had begun earlier in February: "Right now we are in the early stages of discussions, because the U.S. views tariffs not as a tactical step, but as a corrective measure," he said.
Meanwhile, the White House has already levied 25 percent tariffs on foreign-made cars and metals, with more set to begin on Wednesday, April 9.
Musk Weighs In
DOGE head and "First Bro"
Elon Musk recently expressed cautious optimism about U.S.–EU relations: "I hope that the United States and Europe can establish a very close partnership, effectively creating a free-trade zone between Europe and North America," he said.
He added he was "hopeful" about a zero-tariff outcome. Such a deal nearly materialized under former President
Barack Obama through the Transatlantic Trade and Investment Partnership, but negotiations collapsed in 2016 after Greenpeace leaked details, raising concerns over food safety regulations and environmental protections.
Talks officially ended in 2019 during Donald Trump's first term.
