US President Donald Trump rejected an offer from European Commission President Ursula von der Leyen, which proposed a “zero-for-zero” tariff deal on cars and industrial goods. In a fiery White House press conference on Monday, Trump said that the EU’s offer was insufficient, stating that Brussels would need to purchase $350 billion (£280bn) of American energy to secure relief from his sweeping tariffs.

Trump’s response came after von der Leyen had earlier proposed that the EU would drop its tariffs on US cars and industrial goods, provided the US reciprocated by removing its own tariffs. However, Trump was unrelenting, saying, “No, it’s not [enough].” He continued: “We have a deficit with the European Union of $350 billion (£280bn) and it’s gonna disappear fast.” The US president then elaborated on his demand, stating, “One of the ways that that can disappear easily and quickly is they’re gonna have to buy our energy from us… they can buy it, we can knock off $350 billion (£280bn) in one week. They have to buy and commit to buy a like amount of energy.”

The stakes are high, as Mr Trump's tariffs – which include a 20% levy on the EU and a 10% minimum tax on other trade partners – have already caused massive market losses.

Global financial markets have seen trillions of dollars wiped off their value, with European stocks on Monday suffering their most significant one-day declines since the onset of the COVID-19 pandemic.

Mr Trump’s remarks on the tariff dispute indicate a belief that the trade deficit with the EU needs to be addressed through significant purchases of US energy.

The President said: “People say, ‘Oh, it doesn’t mean anything having a surplus. It means a lot, in my opinion. It’s almost like a profit or loss statement."

Mr Trump was speaking while hosting Israeli Prime Minister Benjamin Netanyahu at the White House. After their discussions, the US president reiterated his stance on the EU tariffs, suggesting that he was open to negotiating with the bloc as long as it made a firm commitment to reduce the trade deficit by purchasing more US energy.

This latest move follows earlier proposals by von der Leyen to negotiate a deal for increased imports of US liquefied natural gas (LNG). However, according to reports, the U.S. had failed to offer clarity on how such a deal might be structured. Mr Trump has now placed the onus on the EU to secure the future of trade relations by making such purchases.

During the press conference, when asked if his global tariffs were meant as a negotiation tactic or permanent policy, Mr Trump responded:, “There can be permanent tariffs and there can also be negotiations, because there are things we need beyond tariffs.”

He added, “If we can make a really fair deal and a good deal for the United States, not a good deal for others, this is America first. It’s now America first.”

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His latest remarks suggest that the EU will need to do more than just remove tariffs; the US wants Brussels to lower its standards, which Mr Trump claimed act as “non-monetary barriers” to US products.

He said: “They come up with rules and regulations that are just designed for one reason: that you can’t sell your product in those countries," referring to European safety and regulatory standards. He warned: “We’re not gonna let that happen.”

Mr Trump continued to cite the US's historical reliance on tariffs.

He said: “You know our country was the strongest from 1870 to 1913. We had no income tax. Then in 1913, some genius came up with the idea of let’s charge the people of our country, not foreign countries that are ripping off our country."