Trump does not accept the EU's concession of 20% tariffs is imperative

U.S. President Donald Trump has rejected a European Union proposal to eliminate bilateral tariffs on industrial goods between the bloc and the United States, meaning his 20 percent tariff on all EU imports will take effect on Wednesday.

Speaking at the White House on Monday, Trump said the plan put forward by European Commission President Ursula von der Leyen did not go far enough to reshape the transatlantic trade relationship and that the EU was maintaining other trade barriers.

"The European Union has treated us very badly. We pay for our military to protect them while they rip us off on trade is not a good partner."

Eu trade officials have been trying to calibrate their response to the US tariff decision, hoping to show a tough stance without escalating the situation.

The EU plans to begin consultations with member states and industries early next week on how to counter the across-the-board tariffs and additional measures targeting the car sector.

Commission spokesman Olof Gill said Tuesday that they plan to discuss the response before coming up with a final set of measures to be voted on by member states.

Trump's speech blasted European trade policies, claiming the EU was blocking access to American cars and agricultural products, and demanding that European countries buy more energy from the United States.

Trump says the EU was created to really hurt the United States on trade, and that's why it was created.

But Trump has not specified what concessions he is seeking, and EU officials have struggled to engage their US counterparts. Von der Leyen has not met with Trump since he took office.