Online reports, according to the Financial Times, ahead of the upcoming negotiation deadline, a senior official warned that if the EU wants to reach a good deal, it must issue a "credible threat" in the trade war launched by Trump. Two EU officials said Seibert, chief of staff to the European Commission president, told EU ambassadors after the G7 summit last week that the prospect of a strong response would help persuade the U.S. president to reduce high tariffs on the EU. German Chancellor Mertz also hinted that his government would support tougher measures. He said on Tuesday: "If no agreement is reached, we are prepared to use various options. We can and will defend our interests." Seibert told ambassadors that European Commission President Von der Leyen was prepared to escalate negotiations to get a better deal. He asked them to support a package of tariffs on 95 billion euros worth of U.S. goods, and said the European Commission was also preparing measures to target the services industry-including taxes on U.S. technology companies and restrictions on U.S. companies 'access to public procurement contracts. One of the officials said the message was that "we need to leverage through a credible rebalancing plan."