Sources: U.S. trade stance tough, European Union prepares retaliation plan

European Union envoys are due to meet as early as this week to develop a plan for a possible "no deal" scenario with US President Donald Trump, whose tariff negotiating stance is seen as hardening ahead of an August 1 deadline. While there is a strong preference to let talks with Washington continue in the hope of reaching a negotiated outcome to resolve the impasse by next month's deadline, efforts have not made sustained progress since talks in Washington last week, according to people familiar with the matter. Negotiations will continue over the next two weeks. The United States now appears to want tariffs of more than 10 percent on European Union goods, with narrowing exemptions limited to the aviation industry, some medical equipment and generic drugs, certain alcoholic beverages, and a specific class of manufacturing equipment required by the United States, according to people familiar with the matter who spoke on condition of anonymity.