EU had offered to cut tariffs on US cars and industrial goods in 'zero-for-zero' deal negotiations (2025)

EU offer came as early as February

European Commission president Ursula von der Leyen confirmed that the EU had offered up a “zero-for-zero” tariff deal as early as February.

Ms von der Leyen said that the deal remains on the table “because Europe is always ready for a good deal”.

European trade commissioner Maros Šefčovič said the EU is ready to discuss a zero-for-zero tariff rate, which would include cars, chemicals, pharmaceuticals, rubber, plastic, machinery, and other areas of industrial output.

However, he added that it would not be possible to delay the introduction of EU tariffs against the US— with the full list of counter-measures being published on Monday evening.

These counter-tariffs are set to target goods including diamond, eggs, dental floss, sausages, and poultry from May 16, according to a European Commission document. Further tariffs on almonds and soybeans are also due to be introduced, but will come into effect on December 1.

However, bourbon, wine, and dairy products have been removed from the list of counter-tariffs after lobbying from Ireland, France, and Italy amid concerns of major retaliation by the US administration.

If they are formally agreed on Wednesday by member states, a first round is expected to be introduced on April 15.

Support for businesses

Speaking in Luxembourg, Tánaiste Simon Harris said the Government and EU are prepared to support businesses impacted by US tariffs — but they are not yet required.

“How do we support Irish businesses through this difficult time and this will ultimately have to be part of the European response, but we’re not at that moment yet," he said.

Meanwhile, Taoiseach Micheál Martin is understood to have spoken with a number of multinational corporation CEOs in recent days, particularly in the pharmaceutical sector, to discuss US tariffs.

The response from the EU Commission capped another day of global volatility in the ongoing tariff war, which saw trillions wiped off stock markets.

Investors see little hope of a resolution to the conflict in the near term, with China's decision on Monday to impose 34% reciprocal tariffs on the US from Thursday.

In response, Mr Trump vowed to hit back with an extra 50% tariff on China— highlighting the escalating nature of the conflict.

European and Asian stocks

The mood of uncertainty was reflected in another bleak day on international markets. In the US, the major stock indexes, the S&P 500, the Dow Jones Index, and Nasdaq all fell sharply in early trading before recovering in the afternoon.

However, European and Asian stocks fared much worse. Hong Kong's Hang Seng index fell more than 13%, its biggest one-day fall since 1997.

In Dublin, the ISEQ All Share Index fell by more than 4% and has erased all gains so far this year.

All major companies on the exchange fell on Monday— including AIB, down 1.4%; Bank of Ireland, down 2.2%; Ryanair, down 3.7%; and Kerry Group, down 4.7%.

European shares slumped in a volatile session on Monday, with the Stoxx 600 closing at its lowest since January 2024. In London, the FTSE 100 ended 4.4% down.