The European Union offered the United States a zero tariff trade deal with the United States (US) weeks before President Donald Trump announced sweeping tariffs on EU goods, according to EU Trade Commissioner Maroš Šefčovič.
Speaking after talks with U.S. Commerce Secretary Howard Lutnick on February 19, Šefčovič revealed that the EU had proposed eliminating tariffs on cars and a range of industrial goods—including machinery, pharmaceuticals, and rubber products.
While the EU remains open to negotiations, Šefčovič indicated that progress has been slow. “The U.S. sees tariffs not as a tactic, but as a corrective tool,” he said. European Commission President Ursula von der Leyen confirmed that the EU’s zero-for-zero tariff proposal remains on the table.
Trump has consistently criticized the U.S. trade deficit with the EU, particularly targeting European car imports. “They don’t take our cars, they don’t take our food products,” he said over the weekend.
In response, Šefčovič defended the EU’s value-added tax (VAT) system, calling it widely accepted and used in over 160 countries. He said any resolution must be “mutually advantageous.”
Meanwhile, the EU is preparing to respond to Trump’s new 20% tariff on all EU imports, set to take effect on April 15. Member states will vote on a list of retaliatory tariffs targeting up to €26 billion worth of iconic American products, including jeans, orange juice, and Harley-Davidson motorcycles.
One contentious item on the list is U.S. bourbon whiskey. While France and Ireland are advocating for its removal—especially after Trump threatened 200% tariffs on French wine and champagne—Germany has pushed back.
German Economy Minister Robert Habeck warned that exempting specific goods would weaken the EU’s position. “We need to act clearly and prudently. America is in a position of weakness,” Habeck said.
Italy’s Deputy Prime Minister Antonio Tajani suggested delaying the counter-tariffs until April 30 to allow more time for diplomacy. Italian Prime Minister Giorgia Meloni has reportedly planned a trip to Washington and hopes to convince Trump to reduce the tariff rate. She has also downplayed fears over the tariffs, saying the “alarmism” may exceed the actual impact.
Šefčovič said the EU would not delay its April 15 response, though the measures may fall short of the initial €26 billion figure. “We’re not doing tit-for-tat. We’re acting because we must, and we hope to return to a mutually beneficial trade relationship.”
EU ministers meeting in Luxembourg also debated how far to go in retaliating. France pushed for more aggressive action—including targeting U.S. tech companies—while Ireland urged caution, calling that idea “an extraordinary escalation.”
The EU is considering using its new anti-coercion law, which allows for strong countermeasures against nations using trade to pressure the bloc. These include revoking business licenses, banning companies from public contracts, and suspending intellectual property rights.
Šefčovič described the ongoing trade tensions as part of a “paradigm shift” in global trade. The Trump tariffs currently affect around €382 billion of EU exports.
As stock markets reel and global tensions rise, Germany’s Habeck criticized Trump’s economic approach, calling it “ridiculous,” and mocked Elon Musk’s recent call for free trade. “If Musk wants zero tariffs, he should tell the president to stop the nonsense first,” he said.
Former Italian PM Matteo Renzi also urged Meloni to take a firmer stance against Trump, emphasizing that defending Italian business interests doesn’t equate to opposing America.