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.

BRUSSELS—The European Union is considering lowering tariffs on a range of U.S. imports in a bid to clinch a speedy trade deal with President Trump, according to people familiar with the matter. EU leaders debated how much they are willing to sacrifice to win over Trump at a meeting in Brussels on Thursday evening.

President Trump said the United States would send out letters telling other countries “what they have to pay,” even as other officials said negotiations could be extended past a July deadline.