The chief executive of Volvo Cars urged the European Union to cut its 10% tariff on American-made cars, arguing that European automakers do not need protection from U.S. competitors, in an interview with Reuters on Thursday.

Volvo is one of the most exposed European automakers to U.S. tariffs as the bulk of its cars sold there are imported from Europe.

"This is a budget for the realities of today, as well as the challenges of tomorrow," European Commission President Ursula von der Leyen said during a press conference. The proposal must still be approved by the European Parliament and EU member states and could undergo changes in that process.

The European Union has warned that its trade with the United States could be effectively wiped out if Washington makes good on its threat to slap a 30% tariff on goods imported from the bloc.

The European Union has dropped its plan for a tax on Big Tech firms, likely as part of attempting to secure a more favorable trade deal with Trump.

The European Union is racing to clinch an agreement with the Americans before tariffs kick in on Aug. 1, even as President Trump has signaled he is in no rush.