European Union leaders are set to debate their strategy in response to President Donald Trump’s trade war, with the likely choices coming down to accepting an unbalanced deal or risking escalation by striking back.

European leaders debated what they could give up to secure a speedy trade deal.

European Union leaders considered new US trade proposals ahead of the July 9 deadline for US President Donald Trump's tariffs at a Brussels summit on Thursday. They also addressed the Mercosur trade agreement,

President Trump threatened to impose 50% tariffs on the European Union, potentially effective as of June 1. He announced his Truth Social platform before the U.S. stock market opened on Friday. Trump claimed that trade talks with the European Union “were going nowhere” and that “straight 50%” tariffs could go into effect.

President Trump on Wednesday applauded NATO allies' increased defense spending target, patting himself on the back for a "monumental win" for the U.S. — and lambasting Spain for negotiating an exemption.