The European Union is preparing for a potential trade conflict with the United States as negotiations over tariffs remain unresolved ahead of the August 1 deadline.

U.S. President Donald Trump has threatened to impose a 30% tariff on all EU imports if no agreement is reached, adding to existing tariffs on sectors like cars, steel, and pharmaceuticals.

The EU is seeking to avoid these tariffs through ongoing negotiations, but doubts persist about Trump's willingness to compromise, with some officials skeptical about achieving a zero-tariff deal.

Despite the challenges, some members of the Trump Administration remain optimistic, with Commerce Secretary Howard Lutnick expressing confidence that key countries prefer market access over tariffs.

Negotiations in Washington last week did not produce significant progress, and discussions are expected to continue over the next two weeks.

Discussions have included potential sector caps and quotas for goods like steel and aluminum, which are also subject to U.S. tariffs.

The EU has already prepared a list of retaliatory tariffs targeting U.S. products worth approximately €21 billion, with plans to expand this to nearly €100 billion if no deal is reached.

The EU had hoped for a framework for a 10% universal tariff on exports, but recent U.S. communications have shifted this outlook, prompting a reevaluation of their strategy.

The EU aims to continue negotiations to avoid implementing counter-tariffs, but there is a strong possibility that tariffs of 30% could be imposed if the deadlock persists.

Currently, EU exports to the U.S. are already subject to duties covering about €380 billion, representing 70% of total EU exports to America.

Insiders report that Trump’s stance on tariffs has hardened, with plans to impose near-universal tariffs exceeding 10%, possibly up to 20%, with limited exemptions.

Economists warn that such high tariffs could effectively block European goods from the U.S. market, prompting the EU to prepare countermeasures by early August.