Among the concessions Mr Trump's entourage is seeking, there is an agreement on a quota that would limit European steel and aluminium exports to the US.
Tariffs of 25 per cent on steel imported into the United States and 10 per cent on imported aluminum will take effect as of midnight Thursday, Mr. Ross told reporters on a conference call.
If he does impose the tariffs, the European Union has vowed to hit back with its own tariffs on American goods, including iconic items such as Harley-Davidson motorbikes, blue jeans and bourbon whiskey.
The two sources briefed on the matter said the decision would land before a Friday expiration deadline for exemptions to the planned tariffs. Canada has pledged to retaliate in the past. Check back for updates.
Europe did not want a trade war, he said, but Washington had to back down from "unjustified, unjustifiable and unsafe tariffs".
"The UK and other European Union countries are close allies of the U.S. and should be permanently and fully exempted from the American measures on steel and aluminium", the United Kingdom said in a statement.
The European Commission, which coordinates trade policy for the 28 EU members, has said the bloc should be permanently exempted from the tariffs since it was not the cause of overcapacity in steel and aluminum.
"It makes it really hard to believe that deliberations are in good faith if you're taking capricious actions like this that really hurt the other parties", he said.
The announcement was made by Commerce Secretary Wilbur Ross. In terms of the NAFTA talks, the tariffs could hinder the negotiations among the North American neighbors.
"World trade is not a gunfight at the O.K. Corral", French Economy Minister Bruno Le Maire quipped Thursday, in reference to a 1957 western movie.
German magazine Wirtschaftswoche reported on Thursday that Trump had told French President Emmanuel Macron he wanted to stick to his trade policy long enough until no Mercedes-Benz cars were cruising through NY.
European and U.S. equities lost ground slightly on fears the USA measures could spark a trade war. Earlier this week, there were reports that the talks might be canceled following Trump's renewed threat to impose import taxes on $50 billion in Chinese products.
He also expected NAFTA negotiations to continue despite the new barriers slapped on the U.S.'s neighbors to the north and south, and pointed to the fact that negotiations continue with China despite the barriers slapped on them previously by the united states.
He said: "If there is an escalation it will be because the European Union would have made a decision to retaliate".