The United States has threatened to impose a 17% duties on the European Union’s agricultural exports, in a move that is dangerously escalating the trade confrontation with Brussels ahead of the July 9th deadline. Donald Trump requires brave concessions from the EU, warning that, without agreement, he will take 20% of all European products.

At the same time, trade negotiations between the EU and Trump’s government seem to have been deadlocked with European diplomats declaring Friday that no substantial progress has been made. The EU, having now abandoned the hope of a comprehensive agreement until the July 9th deadline, is now considering the expansion of the existing regime to avoid the announced duties.

European diplomats report that the European Union’s second counterparts were limited to € 72 billion, significantly reduced compared to the initial provision of € 95 billion.

In his post the Financial Timessay that the United States has threatened to hit EU agricultural products with 17%duties, in a dramatic escalation of trade dispute with Brussels, according to three officials who have been aware of the discussions.

The last minute requirement came shortly before the July 9th deadline to reach a trade agreement. If there is no agreement by then, the US has warned that they will impose 20% duties on all European products.

President Donald Trump is calling on Brussels broad exemptions from US companies regulations and a reduction in EU trade surplus against the US.

EU Commissioner Maros Sefcovic was briefed on meeting at meetings in Washington on Thursday, and then forwarded it to the 27 ambassadors of the Member States on Friday.

Commission President Ursula von der Layen said on Thursday that he is hoping for a “in principle agreement” that will allow the talks to continue. However, Washington is pushing for binding agreements until Trump’s deadline.