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People familiar with the negotiations cautioned that any potential deal could be upended by President Trump, who has yet to comment publicly on the arrangements under discussion.

The EU  is willing to accept a trade arrangement with the U.S. that includes a 10% universal tariff on many of the bloc’s exports, but wants the U.S. to commit to lower rates on key sectors.

The EU and the U.S. believe they can clinch 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 countermeasures.

Tariff negotiations are running into roadblocks, as partners including Japan, India and the EU balk at signing deals without knowing how badly they’ll be hit by separate levies on exports.

EU leaders are set to debate their strategy in response to President Donald Trump’s trade war, with the choices coming down to accepting an unbalanced deal or risking escalation by striking back.

“You’re the only country that is not paying. I don’t know what the problem is,” Trump said when asked about Spain balking at paying 5% of their GDP on defense.

The European Union plans to impose retaliatory tariffs on U.S. imports, including on Boeing Co. aircraft, if President Donald Trump puts a baseline levy on the bloc’s goods as many expect.

Canadian Prime Minister Mark Carney is advancing his pledge to pivot Canada away from its security reliance on the U.S., where it currently spends the vast majority of its defense dollars.

The European Union believes trade negotiations with the U.S. could extend beyond President Donald Trump’s July 9 deadline, even as the speed of the talks has increased over the past week.

The European Commission has launched a surveillance tool to monitor any trade diversion resulting from U.S. tariffs, as initial results revealed a surge of imports in many goods.