EU offers US free trade in industrial goods as new tariffs loom

The European Union has offered the United States an agreement on the reciprocal lifting of all tariffs on industrial goods, European Commission President Ursula von der Leyen announced on Monday, days before 20% tariffs on EU exports enter into force.

"Europe is always ready for a good deal, so we keep it on the table," von der Leyen told reporters in Brussels.

The EU remains ready to negotiate a solution despite US President Donald Trump's tariff decisions, she said, after an exchange with representatives from the steel and metals industries.

The US imposed tariffs of up to 25% on imports of steel, aluminium and related derivative products from the EU and other trading partners in March.

Last week, the US government announced new 20% tariffs for EU imports from Wednesday, alongside universal levies of a minimum of 10% on imports from almost all its trading partners.

Trump says he aims to counter alleged trade imbalances while convincing manufacturers to produce in the US.

While hoping for a diplomatic solution, the EU was preparing countermeasures and setting up a task force to monitor potential trade diversion caused by the US tariffs, von der Leyen said.

"We will not wait endlessly," said EU Trade Commissioner Maroš Šefčovič after a meeting of EU trade ministers in Luxembourg.

"Until we see tangible progress, we will be working along three tracks: defend our interests through countermeasures, diversify our trade through new agreements, deter harmful trade diversions," Šefčovič said.

EU trade ministers also discussed a list of countermeasures to the US' tariffs on steel and aluminium which is due to be confirmed through a vote on Wednesday.

Next to preparing counter-tariffs on US imports, the EU should also consider making crucial exports, like pharmaceutical products, more expensive and imposing charges on digital services from US tech companies, said outgoing German Economy Minister Robert Habeck.

Habeck called on his EU counterparts to act together and not to try to secure more favourable conditions individually, as he arrived at the meeting in Luxembourg.

German minister Robert Habeck also warned

The German minister also warned against an escalation and hasty reactions to the latest tariffs announcement, saying the EU has no time pressure to react to the latest round of tariff announcements.

Trump had steered the US into a "position of weakness," Habeck said.

EU ministers also discussed trade relations with China, as the bloc has been trying to convince China for years to end trade practices including subsidies that the bloc considers to be distorting competition.

Chinese imports to the EU outweighed exports from the bloc to China by €304.5 billion ($333.5 billion) last year. By contrast, the EU recorded a significant surplus of €198.2 billion in trade in goods with the US.

In 2024, goods worth €531.6 billion were exported to the US, with only €333.4 billion worth of goods imported. In the services sector, on the other hand, the EU has a trade deficit with the US.