The EU initially hoped to strike a comprehensive trade agreement, including zero-for-zero tariffs on industrial goods, but months of difficult talks have led to the realisation it will probably have to settle for an interim agreement and hope something better can still be negotiated.
The 27-country bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry while other EU members, such as France, have said EU negotiators should not cave into a one-sided deal on US terms.
After keeping much of the world guessing his intentions, Trump has outlined new tariffs for a number of countries, including allies Japan and South Korea, along with a 50 per cent tariff on copper and a hike to 35 per cent on Canadian goods.
Trump's cascade of tariff orders since returning to the White House has begun generating tens of billions of dollars a month in new revenue for the US government.
US customs duties revenue shot past $US100 billion ($A152 billion) in the federal fiscal year through to June, according to US Treasury data on Friday - equal to or greater than the largest annual take ever from customs duties.
"We remain locked and loaded to sign an agreement with the US. Let's see what happens when our friends in Washington wake up a few hours from now," EU spokesman Olof Gill told a briefing.
A source with knowledge of the US-EU negotiations said an agreement was close but that it was hard to predict if the EU might still get a letter announcing more tariffs or when any agreement might be finalised.
An EU diplomat, speaking on condition of anonymity, said the EU was strong when it acted together.
"It is important that the pain or gain is distributed equally. We cannot have just one country or sector that takes the win."
Trump's 35 per cent tariff on Canada is an increase from the current 25 per cent rate he had assigned and is a blow to Canadian Prime Minister Mark Carney, who was seeking to agree a trade pact with the US.
According to Trump, the new rate will take effect on August 1 and could go up further if Canada retaliates.
"Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1," Carney said on X.
The EU has drawn up countermeasures against Trump's tariffs but has not imposed them.
An initial 21 billion euros ($A37.2 billion) of levies on US imports due in April was suspended before taking effect.
Another package, on 72 billion euros of US imports, could also be applied.
"Basically, if a political decision is made to extend the suspension, then we'll extend the suspension," Gill said.
"If we need to unsuspend it, we can do that, you know, at the drop of a hat," he added.
Elsewhere US Secretary of State Marco Rubio met with Chinese Foreign Minister Wang Yi in Kuala Lumpur on Friday, as the two powers vied to push their agendas in Asia.
Both sides described the meeting as constructive.
China this week warned the United States against reinstating hefty levies on its goods next month and China has also threatened to retaliate against countries that strike deals with the US to cut China out of supply chains.
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