Several discussions are being held with individual countries in the EU, Larry Kudlow said in an interview at CNBC’s Delivering Alpha conference in New York on Wednesday.
The economic adviser added that EU President Jean Claude-Juncker is set to pay a visit to the White House, Mr Kudlow added.
He said: “We will be in discussions.
“I am told he’s bringing a very important free trade offer.”
However, Mr Kudlow added he could not confirm the claims.
The European Commission confirmed in a statement on Tuesday: “President Jean-Claude Juncker will travel to Washington on 25 July 2018 where he will be received by President Donald J Trump at the White House.
“The two leaders will discuss the deep cooperation between the European Union and the United States government and institutions across a wide range of priorities, including foreign and security policy, counterterrorism, energy security, and economic growth.
“President Juncker and President Trump will focus on improving transatlantic trade and a forging stronger economic partnership.”
The news of Mr Juncker’s Washington visit comes amid increasing strained relations as the two sides are looking to find a solution to escalating trade war tensions.
Relations between the pair have deteriorated after the US imposed 20 percent tariffs on European Union steel and aluminium at the start of June.
The EU quickly retaliated and imposed 25 percent import duties on a variety of US products including steel and aluminium products, farm produce such as sweetcorn and peanuts, bourbon, jeans and motorbikes.
Mr Trump has threatened to stretch further tariffs to EU cars, leaving many firms to threaten moving business out of the bloc.
Mr Kudlow added: “I am told through sources, including our ambassadors, that [German Chancellor Angela] Merkel has been working on that, shaking up the EU.
“The President has put things on the table. The Europeans are looking at them, okay? And we may be pleasantly surprised.”