US president Donald Trump has threatened to impose 50 per cent tariffs on all EU goods from July 9th unless the two sides reach a deal. Most EU goods already face a 10 per cent tariff, with levies of 25 per cent on cars and car parts and 50 per cent on steel and aluminium.

The European Union and the US believe they can clinch some form of a trade agreement before a July 9 deadline, when Washington is set to impose a 50% tariff on nearly all EU products and the bloc plans to unleash its own series of countermeasures.

European Commission President Ursula von der Leyen has said that the European Union is ready to reach a trade deal with the United States, but is also considering all possible options if the talks fail.