How the EU is preparing to reach a tariff deal in Trump's game of chicken

The U.S. has doubled down connected its program to impose 30% tariffs connected the European Union adjacent month, seeking to ramp up unit connected the bloc to scope a deal.

With little than 2 weeks to spell until U.S. President Donald Trump's Aug. 1 deadline, the EU continues to negociate with U.S. commercialized officials, portion drafting up a bid of imaginable countermeasures if a woody is not forthcoming.

For its part, the U.S. said the EU continues to beryllium "very eager" successful negotiating a commercialized agreement, according to White House property caput Karoline Leavitt.

Speaking astatine a quality league connected Thursday, Leavitt said the EU is exploring "ways to little their tariff and their non-tariff barriers that we person agelong said harm our workers and our companies."

The U.S. president, whose commercialized warfare tactics person earned him the TACO nickname, volition not judge a postponement of the Aug. 1 deadline, Leavitt said.

TACO stands for "Trump ever chickens out" successful notation to the president's inclination to day to denote precocious import tariffs, lone to aboriginal hold oregon little them.

Michal Baranowski, Polish undersecretary of authorities astatine the ministry of economical improvement and technology, said that, arsenic enactment continues successful a bid to scope a deal, the archetypal portion of the EU's strategy is to negociate with U.S. officials successful bully faith.

"The 2nd 1 is, let's hole for countermeasures successful lawsuit we don't [reach a deal]. And we person countermeasures connected some the alloy and aluminium tariffs arsenic good arsenic the archetypal bundle of 72 cardinal [euros] for alleged reciprocal tariffs," Baranowski told CNBC's "Europe Early Edition" connected Friday.

"Point three, we are comparing notes with different countries that are affected by U.S. tariffs, not to needfully coordinate but to get a consciousness of wherever everyone other is, due to the fact that the different countries negotiating with the U.S. are a spot connected the aforesaid wagon," helium continued.

"Fourth, we are truly strengthening European competitiveness."

Poland's Baranowski said the EU represents the "most captious economical relationship" for the U.S., adding that Washington has "as overmuch to summation oregon to suffer from this narration arsenic Europe."

His comments travel soon aft the EU's apical commercialized negotiator Maros Sefcovic traveled to Washington for further commercialized talks.

The imaginable of caller U.S. tariffs represents a large stroke to the EU. The 27-nation bloc had been scrambling to unafraid a preliminary statement to spare it from receiving a Trump missive dictating a new, across-the-board tariff connected its exports to the U.S.

The U.S. and EU person the largest bilateral commercialized and concern narration successful the world, representing astir 30% of planetary commercialized successful goods and services, and accounting for 43% of the planetary gross home merchandise (GDP), according to EU figures.

Last twelvemonth alone, the worth of EU-U.S. commercialized amounted to 1.68 trillion euros ($1.96 trillion), equivalent to astir 4.6 cardinal euros of commercialized per day.

Trump has repeatedly deed retired astatine the EU for what helium perceives to beryllium an unfair trading relationship, often citing the EU's commercialized surplus with the U.S.

As portion of its propulsion to scope a U.S.-EU model commercialized deal, the European bloc is said to beryllium readying to connection the U.S. tit-for-tat tariff reductions connected cars.

The move, arsenic reported by the Financial Times connected Thursday, would spot the EU driblet its 10% duties connected U.S. car exports if the Trump medication reduces its ain tariffs connected the assemblage to beneath 20%.

The European Commission, the EU's enforcement arm, declined to remark connected the study erstwhile contacted by CNBC connected Friday.

The U.S. president imposed 25% tariffs connected foreign-made vehicles and parts earlier successful the year, hitting companies crossed Europe peculiarly hard.

Sweden's Volvo Cars, for instance, connected Thursday reported a crisp diminution successful second-quarter operating profit, saying the effect reflects an ongoing challenging situation for the industry. The automaker, which is seen arsenic 1 of the astir exposed European automakers to U.S. tariffs, was the archetypal determination carmaker to merchandise results successful what is expected to beryllium a bruising net season.