Germany and France are pushing the European Union to prepare retaliatory tariffs against the United States unless the White House agrees to drop a fresh round of trade penalties by August 1, according to the Financial Times.

Leaders of the European Union and Japan launched an alliance Wednesday aimed at boosting economic cooperation, defending free trade and countering unfair trade practices as the two sides face growing challenges from the United States and China.

The European Union has begun consultations to further simplify environmental policies after cutting back an initial set of sustainability laws earlier this year in response to criticism from industries.

The European Union is readying a sweeping €100 billion ($117 billion) package of retaliatory tariffs on American goods if President Donald Trump follows through on his threat to impose a 30% levy on most EU exports after August 1,

The European Union will merge two packages of potential tariffs against the U.S. so that both are ready to take effect in early August if no deal has been reached with the Trump administration. The combined list will need approval from EU member states and could take effect as soon as Aug.

As the two biggest economic targets in Donald Trump’s trade war, some analysts thought the European Union and China could move closer together and stake out common ground.

Chinese and European Union leaders are meeting at a summit in Beijing on Thursday, with trade tensions running high.

The Council of the European Union – often referred to as the Council of Ministers, or simply the Council – forms one part of the legislature and the budgetary authority of the Union.

World Trade Organization arbitrators on Monday reversed part of a previous panel decision that had rejected the European Union's claims that China had violated the global watchdog's rules on intellectual property.