MILAN (Reuters) -Italy's main business lobby Confindustria on Tuesday called on the European Union to speed up trade agreements with other countries while it negotiates on tariffs with US President Donald Trump.

Trump last week ratcheted up his trade war, announcing a 50% tariff on EU goods starting June 1. He later deferred the deadline to July 9 to allow for negotiations between Washington and Brussels.

"After updating the agreements with Chile and Mexico, the European Union must absolutely conclude the one with Mercosur", Confindustria President Emanuele Orsini said at an annual assembly in Bologna, referring to the South American bloc.

"Mercosur is not enough. That is why we must aim to reach agreements with Australia, make progress in our negotiations with India and the ASEAN countries, and look at the 54 African Union countries that have joined the free trade area", he added.

Orsini also called on the EU to allow derogations from its budget discipline rules not only for defence spending but also to back "a significant plan to support industrial investment across Europe".