TMTPOST -- The European Union officials   suggested   on Wednesday   that   they are   working   toward   a   framework trade with the United States while   keeping   options   including retaliation   in response   to   all   the   possible scenarios   on the table.

Credit：Xinhua News Agency

"We are looking for a reliable framework -- from which we can keep building our common trade," European Commission President Ursula von der Leyen told the European Parliament during a plenary session in Strasbourg, France.  

Von der Leyen   said   the EU is working closely with   the U.S., but is getting ready for all scenarios.   "We stick to our principles, we defend our interests, we continue to work in good faith, and we get ready for all scenarios," said   the   head   of the EU executive body taking charge of leading trade talks for the EU as a whole.

A   European Commission spokesperson said the EU   is aiming for a deal with the U.S. before   August   1,   U.S. President   Donald Trump ’ s latest   deadline   for tariffs,   and "potentially   even in the   coming days",   adding, "We ’ re now in what I would consider to be the most sensitive phase in negotiations."  

"We're working hard to get an agreement in principle with the U.S., and that is where our focus is at this point," the spokesperson said.

EU trade chief Maros Sefcovic told lawmakers   that Brussels and Washington   had made "good progress" on the text of a joint statement   and echoed   the spokesperson, stating that "I hope to reach a satisfactory conclusion, potentially even in the coming days."   But the chief   negotiator   underlined   that EU legislation and regulatory autonomy remain "red lines" and are "non-negotiable" in the talks.

Bernd Lange, chair of the European Parliament's trade committee, said   the EU is not really accepting the "illegal   and unjustified"   U.S. tariffs, referring to   the   25% auto tariffs   and the   50% levies   on steel and aluminum. Launge   said two key issues remain unresolved: the U.S.   has yet to commit to significantly cutting existing tariffs or refraining from new ones.   He warned that the   bloc is prepared to   retaliate if no agreement is settled.

Trump on Monday   posted letters dictating tariffs ranging from 25% to 40% on 14   countries, affecting all imports from Japan, South Korea, Kazakhstan, Malaysia,Tunisia, South   Africa, Bosnia and   Herzegovina, Indonesia, Bangladesh, Serbia, Thailand, Cambodia, Laos and Myanmar.

Reuters   later Monday   reported the Trump administration   will   not send letters to the EU about higher   tariffs   as the bloc was close   to an agreement with   the U.S.   But Trump on Tuesday   indicated   the   letter   informing   new   U.S. reciprocal tariffs on the EU   at hand.   Calling the EU "among the toughest to deal   with", Trump said:   "We ’ re probably two days off from sending them a letter. We are talking to them."

The European   Commission spokesperson on Wednesday said his understanding is that the bloc will not receive such a letter.   Lange the same day said the EU had not received any correspondence so far and had "no clue" about its contents.

Bloomberg on Tuesday reported the EU is nearing   a preliminary   deal   that would shield certain key industries from   tariffs that could   come as early as   August   1.   Commercial aircraft maker   Airbus   Group SE   and certain automakers   are reported to   benefit   from tariff exemptions,   and the   spirits   industry is   set   to receive tariff relief   under the deal.

While   the deal   will enable exemptions granted to German automakers like BMW AG   and Mercedes Benz Group AG, Italian luxury sports car   manufacturer Ferrari NV may be left out   as exemptions   are likely to apply only to those   operate factories in the U.S.