The European Union wants to conclude an agreement with the US "in the coming days" to avoid large-scale tariffs, AFP reports.

If the EU does not reach an agreement with the US, higher tariffs will return and there is a risk that a fierce trade war could flare up.

US President Donald Trump's sweeping levies were due to go back into effect on July 9, but this week he extended the deadline to August 1.

"The U.S. has moved its deadline for finalizing deals with partner countries to August first. However, we aim to reach an agreement before then, possibly even in the coming days," EU trade spokesman Olof Gill said.

"We have shown our willingness in principle to reach an agreement," Gill said, adding, "Reaching an agreement now depends on the willingness to find an outcome that is acceptable to both sides."

This kind of agreement is likely to be low on detail, meaning more negotiations will be needed to flesh it out.

EU diplomats say the European Commission, which is in charge of trade policy for the 27-nation bloc, could continue negotiations until August 1.

The EU expects Trump to maintain the 10 percent base duty on EU goods with exceptions for critical sectors such as aircraft, spirits and cosmetics, European diplomats said.

Talks between the two sides are continuing at all levels. 

EU Trade Commissioner Maroš Šefčovič has spoken with US Commerce Secretary Howard Lutnick and will speak later by phone with US Trade Representative Jamison Greer.

Although the EU wants to reach an agreement, the spokesman said the commission is ready for "all scenarios".

The EU has prepared counter duties on about €100 billion worth of US goods if the talks do not lead to a deal. | BGNES