Washington reports progress in trade talks with Brussels

U.S. President Donald Trump said talks with the European Union over a trade agreement are "making progress" - but warned that 30% tariffs on goods from the bloc was already a deal in his eyes.

"We are talking to the EU and making progress. But look, you know, we already have a deal with the EU. It's called a letter that was sent down. I think it was 30% that's the EU. But we, at the same time, we are talking," Trump said.

Brussels is desperate to avoid the 30% tariffs threatened by Trump, who said over the weekend that he would impose the duties if the EU fails to offer adequate concessions.

In the event the United States enacts the new duties on August 1, the EU has signalled it will retaliate with countertariffs.