The European Commission said on Monday it had offered US President Donald Trump a "zero-for-zero" tariff deal to avoid a trade war, as EU ministers agreed to prioritise negotiations but also respond with countermeasures next week.
The 27-nation bloc faces import tariffs of 25 percent on steel and aluminum, as well as cars, and broader tariffs of 20 percent starting Wednesday on almost all other goods, under Trump's policy of punishing countries that he says impose high barriers to American imports.
Trade ministers met in Luxembourg on Monday to debate the EU's response and discuss relations with China. Many said the priority was to start negotiations to remove Trump's tariffs, rather than fight them.
Michal Baranowski, Poland's deputy economy minister, said at a press conference after the meeting that his EU counterparts did not want to be "rushed to attack."
EU Trade Commissioner Maros Sefcovic said discussions with Washington were in the early stages and that he had offered "zero-to-zero" tariffs on cars and other industrial products, saying he hoped discussions could begin soon.
However, Trump's top trade adviser on Monday rejected tech billionaire Elon Musk's push for "zero tariffs" between the US and Europe, calling the Tesla owner a "car assembler" that depends on parts made in other countries.
"While the EU remains open to - and strongly prefers - negotiation, we will not wait indefinitely," Sefcovic said, adding that the bloc will continue with countermeasures and steps to avoid flooding the market with diverted imports.
The EU is expected to adopt an initial set of countermeasures this week on up to $28 billion worth of US imports, ranging from dental floss to diamonds, in response to Trump's steel and aluminium tariffs, rather than broader tariffs.
But even that step has proven tricky, as Trump has threatened a 200 percent retaliatory tariff on EU alcoholic beverages if the bloc continues with a 50 percent tax on American alcohol. France and Italy, major exporters of wine and spirits, have expressed concern.
Sefcovic said the list is in the process of being finalized, but will be smaller than initially anticipated, due to complaints from EU countries. The bloc will start collecting tariffs on April 15, with a second phase starting a month later.
The bloc is expected to prepare a larger package of countermeasures by the end of April in response to US tariffs on cars and other goods.
Sefcovic made it clear that the EU was ready to consider all response options.
"We are prepared to use every means to defend the single market," he said, reinforcing the position of French Trade Minister Laurent Saint-Martin.
In a tariff war on goods, Brussels has fewer targets to hit than Washington, given that US imports of goods to the EU were worth €334 billion in 2024, compared to €532 billion in EU exports to the US.
Some EU countries, especially those most exposed to trade with the United States, called for caution.
Baranowski said EU member states were open to keeping options open, with an emphasis on proportionality.
"Different ideas were thrown on the table. Some countries mentioned services. Others didn't. Some mentioned digital services, others didn't," he said.
Germany's outgoing Economy Minister, Robert Habeck, said the EU must understand that it is in a strong position if it stays united.
"Stock markets are already falling and the damage could be even greater... America is in a position of weakness," he said in Luxembourg./ REL (A2 Televizion)
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