The European Union (EU) hopes to reach a fundamental agreement with US President Donald Trump on trade tariffs this week, The Guardian reports.

Earlier, Brussels received a postponement. Negotiations could last until August 1 to avoid tariffs of up to 50% on EU imports.

Irish Deputy Prime Minister Simon Harris said that Europe agrees to a basic tariff of 10%, but expects a number of concessions from the US. In particular, the EU insists on reducing tariffs on cars (currently up to 27.5%), steel (up to 50%), medical devices, as well as wine and spirits (currently 10%).

It is especially important for Germany to obtain concessions in the automotive industry. This is of paramount importance for the BMW, Mercedes-Benz and Volkswagen concerns, which have plants in the US.

Also, Brussels seeks to ensure that the preferential terms enter into force immediately after the agreement is signed, unlike the UK, which after Brexit had to wait for the text to be registered in the White House.

Uncertainty remains over potential tariffs on pharmaceuticals, a sensitive issue for Ireland. Harris stressed that the EU wants to conclude negotiations by August 1, but even minimal tariffs would be bad for consumers, jobs, and investment.