Description: European Commission President Ursula von der Leyen complemented the statement made by EU’s Commissioner for Trade Maros Sefcovic who stated that EU is ready to offer the US a zero for zero tariff deal on industrial goods. Trump’s tariffs have disrupted global markets and further aggravated transatlantic relations which forced the EU to reconsider its approach towards the tariff issue. Sefcovic warned that despite EU’s willingness to rapidly resolve the trade issue with the US, the bloc was also prepared for reciprocal tariffs on US goods of any kind. He also stated that the EU delivered a proposal on 19 Feb to US Secretary of Commerce Howard Lutnick for zero for zero tariff policies, which was adamantly refused. Country leaders from the EU have warned against escalation of a trade war with the US and demanded adopting a moderate response which would defuse trade and economic tensions.
Impact: Trump’s tariff foreign policy is revealing itself to be more of a negotiating tactic rather than a significant threat towards the global economy. Experts have warned that US tariffs may cause irreparable damage to the stock markets, however, the number of countries flocking to the negotiating fold has rapidly increased in just a few days. The European Union would naturally be prepared for any countermeasure to the furtherance of the tariffs impact which would cause mutual economic damage. The duration of the tariff impact is yet to be uncovered as economic uncertainty would prompt unconventional strategic alliances to be forged which would ultimately impact the global power dynamics and upcoming geopolitical outlooks.