The European Union hopes to avert a damaging trade war with the U.S. over impending metals tariffs by prioritising negotiations rather than retaliatory countermeasures, EU officials signalled on Wednesday.

European leaders said they would respond firmly to higher levies on steel and aluminum, but they had yet to say what that retaliation would look like.

European Union trade chief Maros Sefcovic spoke with three top members of US President Donald Trump’s incoming administration on how to find a solution on the brewing transatlantic trade dispute.

White House trade and manufacturing senior counselor Peter Navarro explains President Donald Trump’s trade agenda and relations with European leaders on ‘The Ingraham Angle.’

U.S. President Donald Trump signed proclamations late on Monday to raise tariffs on all steel and aluminium imports to 25% without exceptions or exemptions. A White House official confirmed that the measures would take effect on March 4.

European shares were largely unchanged on Tuesday after a record close in the previous session, with investors assessing the risks of an escalating trade war after U.S. President Donald Trump raised tariffs on metals.

The European Union vowed a response to 25% tariffs President Donald Trump said the US will impose on steel and aluminum imports, escalating a potential trade dispute between transatlantic allies.

European Union chief Ursula von der Leyen vowed on Tuesday that U.S. tariffs on steel and aluminum “will not go unanswered,” adding that they will trigger tough countermeasures from the 27-nation bloc.

The European Commission said on Monday it would react to protect EU interests after U.S. President Donald Trump's announcement of impending metals tariffs, but will not respond until it has clarification of the measures.