Trump rejects European 'zero for zero' tariff offer as markets open higher
US president Donald Trump considers the European Commission's proposal for reciprocal zero tariffs on industrial goods to be "insufficient", he told the press on Monday evening. On Tuesday morning, Asian and European markets opened higher after days of heavy losses.
Last week, Trump announced global reciprocal tariffs, including a 20 per cent tariff on the EU, which will take effect on Wednesday. European Commission president Ursula von der Leyen proposed reciprocal zero tariffs on cars and a range of industrial goods in response.
But Trump rejected the offer on Monday night. He has no plans to reduce US import tariffs, he said during a press conference at the White House. "The European Union has been very, very bad to us," he said, adding that the US trade deficit with the EU would "quickly disappear" thanks to the tariffs.
Von der Leyen insisted on Monday that the EU remained ready to negotiate a mutually beneficial solution with Washington. But retaliation is a possibility, she warned. "While the EU remains open to and strongly prefers negotiations, we will not wait endlessly," Trade commissioner Maros Šefčovič said on Monday.
Global financial markets reacted to the escalating trade war with a sharp downturn in recent days. On Tuesday morning, however, both Asian and European markets opened in the green. After falling below 4,000 points for the first time in eight months on Monday, the Bel20 recovered slightly, gaining around 2 per cent.
Trump's actions are also causing divisions within the Republican Party. Several high-profile donors have spoken out against the tariffs in recent days. According to the Washington Post, even Elon Musk - one of the president's staunchest supporters - tried unsuccessfully to persuade Trump to reverse the tariffs.
© PHOTO SAUL LOEB / AFP
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