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.

While hiking tariffs could help U.S. steel producers, it is expected to increase costs for consumers and American makers of a variety of products − from cars to homes − that use steel.