In the latest chapter of escalating global trade tensions, the European Union signaled its willingness on Monday to negotiate with the United States on industrial tariffs, days after former President Donald Trump announced a sweeping new tariff regime aimed at correcting what he calls a “broken” global trading system.
Speaking at a press conference in Brussels, European Commission President Ursula von der Leyen said the EU is open to a “zero-for-zero” tariff agreement on industrial goods — essentially eliminating such tariffs entirely on both sides.
“We have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners,” von der Leyen said. “We remain open to good-faith negotiations with the United States to avoid a damaging trade war.”
Trump, who returned to the White House following the 2024 election, announced last week a 20 percent tariff on all EU industrial imports as part of a broader package that includes a minimum 10 percent tariff on goods from most countries and retaliatory measures aimed at perceived unfair practices.
Markets have responded sharply to the moves. Wall Street has slumped for a third consecutive day, with major indexes posting significant losses. Global markets followed suit, with analysts citing fears of higher consumer prices, disrupted supply chains, and slower economic growth.
“This is not just a U.S.-EU spat,” said Caroline Winters, senior analyst at Global Trade Advisory. “It’s a fundamental reshaping of the post-World War II trading order, and markets are understandably rattled.”
The EU had previously announced $28 billion in retaliatory tariffs targeting U.S. goods after Trump imposed 25 percent duties on foreign steel and aluminum earlier in the year. Monday’s comments from von der Leyen suggest the EU may be looking to de-escalate — if Washington is willing.
However, any thaw in relations with Europe comes as Trump ramps up his economic pressure on China. On Monday, he threatened to impose a new 50 percent tariff on Chinese goods, a dramatic escalation in response to Beijing’s own retaliatory 34 percent tariff — itself a reply to Trump’s previous 34 percent duties.
“Therefore, if China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote on his Truth Social platform. “Additionally, all talks with China concerning their requested meetings with us will be terminated!”
China, for its part, has vowed to “fight to the end” if necessary. While Trump claims the tariffs are justified by Beijing’s long-standing trade abuses and its alleged failure to stop fentanyl exports, critics warn that a prolonged trade war could have severe global consequences.
Trump’s administration maintains that over 50 countries have already reached out to negotiate potential exceptions or trade deals under the new tariff framework — though no specific agreements have been announced.
Meanwhile, Agriculture Secretary Harold Jenkins stirred confusion during a press briefing when asked about tariffs imposed on uninhabited Australian territories. “Whatever,” he responded, before pivoting to another topic.
Economists remain divided. Supporters of the tariffs argue that they're a bold step to restore American manufacturing and level the playing field. Detractors say the measures are likely to backfire, causing price hikes and alienating allies.
“Tariffs are taxes, plain and simple,” said Maya Bhatt, an economist at the Brookings Institution. “Consumers and businesses will ultimately bear the cost. And the idea that trade deficits are inherently bad is an outdated notion.”
