Any agreement would likely include a 15 per cent baseline tariff on EU goods entering the US and a 50 per cent levy on European steel and aluminium, according to diplomats familiar with the talks.

The European Union and the US are progressing toward an agreement that would set a 15% tariff for most imports, according to diplomats briefed on the negotiations.

The agreements have been overshadowed by U.S. firms' warnings that the tariffs will affect their bottom lines and prolong uncertainty in the economy.