The European Union may be nearing a trade agreement with the United States but is struggling to obtain immediate tariff relief and a commitment not to introduce new measures, the head of the European Parliament's trade committee said on Wednesday.

Responding to the question, “Should the EU Bite the 10 Percent Tariff Bullet With the United States?” Steve Hanke writes:

The European Union will not receive a letter from the Trump administration laying out higher tariffs and there is a possibility of exemptions from the U.S. baseline levy of 10%

Japan, which Trump said Monday faces a 25% tariff, wants concessions for its large automobile industry and will not sacrifice its agriculture sector for an early deal, top trade negotiator Ryosei Akazawa said.

President Trump threatened to reimpose so-called reciprocal tariffs on the European Union, saying he is just days away from sending the 27-nation bloc a letter that would outline what tariffs it would have to pay on August 1.

European politicians and diplomats were on standby waiting for word of a breakthrough in the tariff negotiations with the United States, which one official said had entered the “final phase”.

It shows that personal grudges rather than simple economics are a driving force in the U.S. leader’s use of tariffs.

The U.S. dollar strengthened on Thursday amid new tariff tensions from President Trump, particularly against Brazil. Markets remained cautious but optimistic regarding potential trade agreements with China and the EU.