The United States appears firm on its slated tariff increase on the EU following comments made by U.S. Commerce Secretary Howard Lutnick over the weekend.

Last-ditch talks to reach a trade agreement are ongoing, with the EU hoping it can negotiate a lower tariff rate. The bloc had hoped it could strike a similar pact to the U.K., which was the first country to make a trade agreement with the U.S. That deal includes a 10% baseline tariff with some caveats relating to car, steel and aerospace imports.

U.S. Secretary of Commerce Howard Lutnick testifies before a House Appropriations Committee hearing on U.S. President Donald Trump's budget request for the Department of Commerce, on Capitol Hill in Washington,