Overview

• European Commission President Ursula von der Leyen proposed a zero-for-zero tariff deal on industrial goods and cars to de-escalate the trade conflict with the United States.
• President Donald Trump rejected the offer on April 7, 2025, claiming it was insufficient and accusing the EU of longstanding unfair trade practices.
• Trump asserted that the European Union was formed to economically harm the United States, a historically inaccurate claim that has drawn criticism.
• The U.S. president also tied NATO financial contributions to perceived trade imbalances, arguing that the U.S. has been exploited both militarily and economically by European nations.
• The EU signaled readiness to implement countermeasures, including a potential 25% tariff on U.S. goods, to defend its economic interests against escalating U.S. tariffs.