A senior German politician said on Sunday the European Union and Washington could negotiate further and postpone higher import duties after U.S. President Donald Trump ramped up the trade war by threatening a hike in tariffs on the bloc.

The European Union is awaiting clarity on the approach that President Donald Trump wants to take with respect to tariffs. According to a Reuters report, the EU is bracing for a tariff letter from the White House on Friday,

Shelving the plan could help EU persuade the U.S. to give it a more favorable trade deal and comes just two months after the Commission suggested it.

The European Union braced on Friday for a possible letter from U.S. President Donald Trump, outlining planned duties on his largest trade and investment partner after a broadening of his tariff war in recent days.

The announcement came in a letter published on Truth Social, in which Mr Trump responded to a letter sent last week by Canadian Prime Minister John Carney

Trump intends to make good on his threat to drop talks and just set unilateral rates, raising the stakes before his August 1 deadline.