The European Union has decided to hold off on imposing retaliatory tariffs on U.S. goods that were set to begin Monday.

President Donald Trump released two tariff letters on Saturday, imposing duties of 30% on products from Mexico and the European Union.

German Finance Minister Lars Klingbeil said on Sunday the European Union must take "decisive" measures against the United States if tariff negotiations fail to cool an escalating global trade war.

The EU Committee of Permanent Representatives (Coreper) will hold an extraordinary meeting in Brussels on Sunday 13 July, during which EU member state ambassadors will discuss the draft of the 18th package of EU sanctions against Russia,

The European Commission responded to Trump's announcement in a written statement, saying it remains ready to reach an agreement, while also taking "necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures.

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.

European producers say streamers investment obligation will improve local content, increase competitiveness against 'stone cold' U.S. market.