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 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.

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

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.

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”.

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.

The pause on the biggest of Trump's tariffs won't pass this week, as planned, but the problems they present still loom large.