EU Proposes Tariff-Free Deal to Avert Trade War with U.S.

The European Commission seeks to avoid a trade war with the U.S. by proposing a 'zero-for-zero' tariff deal, in response to President Trump's tariffs on EU imports. The EU plans retaliatory tariffs on U.S. imports, while advocating negotiations to resolve the issue amid trade tension.

The European Commission has proposed a "zero-for-zero" tariff agreement to prevent an escalating trade war with the U.S., following President Trump's imposition of heavy tariffs on EU imports. The EU's 27-member bloc faces impending import levies of 25% on steel, aluminum, cars, and nearly all other U.S. goods.

In a composed yet firm response, the EU suggested retaliatory tariffs of 25% on certain U.S. imports. However, intense pressure from EU members led to the exclusion of bourbon, wine, and dairy to avoid further reprisals from Trump, who had threatened additional tariffs on European alcoholic beverages.

EU trade chief Maros Sefcovic emphasized the urgency for negotiations to dismantle Trump's tariffs, rather than aggravating them. Sefcovic expressed hope that talks with Washington could start soon, reiterating the bloc's readiness to implement countermeasures as needed.

(With inputs from agencies.)