EU states call Trump's 30% tariff threat 'absolutely unacceptable', says Danish foreign minister

European Union member states find US President Donald Trump's 30% tariff threat "absolutely unacceptable," Danish Foreign Minister Lars Lokke Rasmussen said on Monday during a joint press conference with the EU's Trade Chief Maros Sefcovic in Brussels.

Asked about his expectations of talks with the EU, the White House National Economic Council director said: "We'll see ... we've got a few weeks left."

The EU and South Korea said on Monday they were working on trade deals with US President Donald Trump that would soften the blow from looming tariffs as Washington threatens to impose hefty duties from August 1.

"The EU ... never walks away without genuine effort, especially considering the hard work invested how close we find ourselves to making a deal and the clear benefits of the negotiated solution. But as I said before, it takes two hands to clap," Sefcovic said on Monday.

Speaking in Brussels, where EU trade ministers discussed the tariff threat, European Trade Commissioner Maros Sefcovic warned that a 30% tariff would practically eliminate trade between the US and the 27-nation bloc, which are currently each other's largest trading partners.

He expressed optimism, however, that talks between Washington and the EU were approaching a positive outcome for both sides.

"We have to do, and I will definitely do, everything I can to prevent this super-negative scenario," Sefcovic said.

Sefcovic then said that EU member states agreed that the EU would need to go for countermeasures if the trade negotiations with the US fail.

He added he believes there is "still a potential to continue the negotiations" and that any deal has to be accepted by EU members and the European Parliament.

He also said he plans to confer with his US counterparts later on Monday to discuss the state of play.

White House Economic Adviser Kevin Hassett had said on Sunday that countries' trade deal offers so far had not satisfied Trump, adding that without improvements to their proposals "the tariffs are real."

"The president thinks that deals need to be better," Hassett told ABC's This Week program. "And to basically put a line in the sand, he sent these letters out to folks, and we'll see how it works out."

An Indian trade delegation has reached Washington for fresh talks on a trade deal with the United States, two Indian government sources said on Monday.

India’s chief trade negotiator, Rajesh Agrawal, is expected to leave on Tuesday to join the talks, said one of the sources, who declined to be named because they were not authorized to speak to the media.

A spokesperson for India's commerce ministry did not immediately respond to a request for comment.

Trade talks between the two nations were progressing at a fast pace, India's trade minister Piyush Goyal said at an event in New Delhi on Monday, adding that the aim was to reach an agreement that would be a win-win for both sides.

India is among the few countries that are still negotiating a trade deal with Washington, as President Donald Trump ramps up his trade war with the threat of sharply higher tariffs from August 1.

Goyal earlier said that New Delhi would make trade deals that were in the national interest and not just to meet deadlines

After Chancellor Friedrich Merz said on Sunday that a 30% tariff would "hit the German export industry to the core," the head of the German Chamber of Commerce and Industry called for swift action.

"The escalating tariff conflict with the USA poses a serious threat to many German companies," Volker Treier said on Monday. "Tough negotiations are now needed to avert a collapse of transatlantic trade."

Continued insecurity due to US tariff policy could also reduce German exports to the world's largest economy by 1 billion euros ($1.17 billion) per month, an economic expert from the German Chamber of Commerce and Industry (DIHK) said.

"If the uncertainty regarding US tariff policy continues, this could reduce German industry's exports to the US alone by almost 1 billion euros per month," Jupp Zenzen said in a statement sent to Reuters by email.

The EU has so far held off on retaliatory measures to avoid a spiraling tit-for-tat escalation in the trade war, while there remains a chance of negotiating an improved outcome.

But Italy's Foreign Minister Antonio Tajani said the EU has already prepared a list of tariffs worth 21 billion euros ($24.5 billion) on US goods if the two sides fail to reach a trade deal.

European industries, meanwhile, are preparing for the worst.

Producers of Italy's renowned Chianti wine in Tuscany have demanded a new export strategy backed by the EU, targeting alternative markets such as South America, Asia, and Africa in response.

Since returning to the White House earlier this year, Trump has sought to use an array of tariffs to boost the US economy, push companies to invest in the United States, and revitalize sectors including manufacturing.

His initial "Liberation Day" tariff announcement in April, which set a baseline tariff of 10% on all imports and higher duties on certain products or countries, raised fears of global supply chain disruptions, sending shockwaves through markets.

But subsequent U-turns and delays, including a 90-day pause on most duties aimed at allowing time for trade deal negotiations, have left investors largely inured to Trump's chaotic policy roll-outs.

European stocks fell on Monday, while US futures pointed towards a lower Wall Street open in response to the latest salvo. European autos and alcohol stocks were among those hardest hit.

The looming August 1 deadline has set off a scramble by governments around the world to seal trade agreements.

South Korea's top trade envoy said on Monday it may be possible to strike an "in-principle" deal by the deadline and signaled that Seoul may be open to allowing the US greater access to its agricultural markets, local media reported.

Minister for Trade Yeo Han-koo, who held high-level talks with US officials last week, said South Korea was seeking to avoid "unfair" US tariffs on sectors key to its industrial prowess that would undermine industrial cooperation with its main security ally and trading partner, media reports said.

"Twenty days are not enough to come up with a perfect treaty that contains every detail," he added.

South Korea is in a race to reach a compromise trade pact in the hope of avoiding a 25% tariff slapped on its exports, the same level faced by Japan.