The European Union will not receive a letter from the United States setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday, and is eyeing possible exemptions from the U.

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%

President Donald Trump threatened new tariffs on more than 20 countries this week, but his justification for raising import taxes on Brazil stands out.

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.

Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), a Swedish company, repeatedly cautioned this year that any US tariffs on European imports could affect its profit margins by around one percentage

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.

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 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”.