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 Union on Monday said it is preparing “countermeasures” against the United States after the Trump administration’s surprise tariffs on steel rattled global markets

The European Union said it is preparing “countermeasures” against the U.S. following President Donald Trump’s unexpected announcement that he would increase his tariffs on steel. EU Commission President Ursula von der Leyen and Trump last week agreed to “rapidly” begin on a trade deal.

Donald Trump’s combative trade policies have tipped the world economy into a downturn, with the US among the hardest hit, the OECD said.

President Donald Trump’s turbulent tariffs are projected to cause a sharper slowdown in economic growth in the U.S. than expected.

Officials are seeking to accelerate talks with multiple partners ahead of a self-imposed deadline in just five weeks, according to a draft letter to negotiating partners seen by Reuters.

As Trump's tariff deadline nears, the U.S. is seeking trade proposals from global partners, including the EU and Japan, focused on industrial and agricultural products.

The crypto markets remain stalled as the Trump administration has urged countries to submit their best trade offer by Wednesday, Reuters reported on June 2. The crypto market has seen its total capitalization decline from approximately $3.