European firms are urging trade negotiators to reach a deal with the U.S. after Trump threatened a 30% tariff on EU imports from August. The U.S.-EU trade partnership was worth $975.9 billion in two-way goods trade last year.

Despite the threat, firms are hoping Trump will back off, as he has in the past. Analysts are urging calm, citing Trump’s history of revising demands and pushing deadlines. Companies are not rushing to tweak supply chains.

Volvo Car announced it cannot sell its ES90 profitably in the U.S., leading to a $1.2 billion charge. Shares of European carmakers fell, with Volkswagen, Fiat, Renault, BMW, Mercedes-Benz, and Porsche all down 1-2%.

German companies are at risk due to the escalating tariff conflict. DIHK chamber urges ministers to prioritize talks to prevent a collapse of transatlantic trade. EU officials call the tariff plan “prohibitive to any trade” in its current form.

Trump’s 30% tariff threat is separate from existing sectoral tariffs, implying a 27.5% duty on autos will remain. The pharmaceutical industry is withholding judgment after various tariff threats from 200% levies to the new 30% EU-wide one.

European companies are calling for clarity and quick solutions. They emphasize the need to strengthen Europe as a center of industry and conclude free trade agreements quickly. Mercedes-Benz stresses the importance of an agreement for economic success.

Shares in major European firms exposed to the U.S. are down. Food makers warn the 30% rate would be disastrous. Pernod Ricard and Remy Cointreau are down, while Diageo is up. LVMH, Nestle, Procter & Gamble, and Reckitt Benckiser are also down.

Uncertainty looms as European companies demand a fair agreement by August 1 to avoid a trade war. They stress the importance of strengthening Europe’s industrial capacity and quickly securing free trade agreements.

Read more at Yahoo Finance: Europe Inc cautions calm as bloc tries to avert 30% US tariffs