The European Union (EU) is continuing intensive trade talks with the US ahead of a July 9 tariff deadline set by President Donald Trump and is “making progress,” according to EU Economy Commissioner Valdis Dombrovskis, Bloomberg reports.

“Our preference is to find a mutually acceptable solution and in a sense to park those trade tensions,” Dombrovskis told a news conference after a meeting of euro-area finance ministers in Luxembourg on Thursday.

Still, he warned that the EU is “ready to take measures to protect our economic interests and our businesses should we not be able to find this solution.”

And asked whether the EU is resigned to Trump maintaining a 10% baseline tariff, he said “so-called reciprocal tariffs” were “speculative assumptions which are not reflecting the current state of negotiations.”