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.

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.

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

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”.

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.

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.