The EU has pledged to buy $750 billion of energy from the U.S. in exchange for a lower rate tariff rate in its trade deal, but analysts say this is unrealistic.

If there is no deal and the US imposes 30 per cent tariffs, the EU has prepared counter-tariffs on US$109 billion of US goods.

President Donald Trump is set to hold trade talks with President of the European Commission Ursula von der Leyen, days before the Aug. 1 tariff deadline.