The European Union is preparing “countermeasures” against the United States if the two sides cannot reach a deal after surprise U.S. tariffs on steel rattled global markets and complicated the ongoing negotiations between Brussels and Washington.

The European Commission said on Monday it would make a strong case this week for the United States to reduce or eliminate tariffs even after Donald Trump said he would double import duties on steel and aluminium to 50%.

The EU prepares countermeasures after Trump slaps 50% steel tariffs, threatening to derail ongoing trade talks with Brussels.

Global stocks mostly dipped on Monday as investors digested President Donald Trump’s doubling of tariffs on American’s steel imports and as trade tensions with China flare up once again.

Stocks jumped on Tuesday, after Mr. Trump announced over the Memorial Day weekend that he would pause the implementation of steep tariffs on the European Union until July 9 to allow more time for trade negotiations with the 27-country bloc.

Trump's announcement comes days after he threatened the EU with a 50% tariff after having paused reciprocal tariffs on it and other nations in April.

The ruling "maybe cost us a week, but then everybody came right back to the table," the commerce secretary said.

Commerce Secretary Howard Lutnick said Sunday that “tariffs are not going away” after a US appeals court paused a block on many of the Trump administration’s sweeping tariffs.