The EU has secured itself a temporary stay on US steel and aluminium tariffs, following emergency talks between the bloc’s trade chief and her American counterparts.
Two senior EU sources told the Evening Standard that the US intends to “suspend the application” of the tariffs to the EU.
The tariffs - a 25pc tax on most foreign steel and aluminium exports - were due to kick in on Friday.
The bloc has not been granted a full exemption, but EU trade officials are in Washington to negotiate a lasting solution over the next few weeks.
The suspension was expected to be confirmed by the Trump administration on Thursday afternoon.
EU trade commissioner Cecilia Malmström briefed EU ambassadors on Thursday morning on what she said was a “good meeting” with US commerce secretary Wilbur Ross.
The prime minister is due to attend an EU leaders’ summit this afternoon, where she and her counterparts are expected to welcome the move.
EU diplomats this week roundly condemned US President Donald Trump’s announcement, saying it is illegal under World Trade Organization (WTO) rules, and voiced fears of an impending transatlantic trade war.
The European Commission, which handles trade talks on EU countries’ behalf, published a retaliatory list of US products it had intended to target if the tariffs went through.
The EU’s list includes bourbon, whiskey, rice, orange juice, clothing and shoes, and once approved by the WTO, would allow the bloc to impose tariffs of up to 25pc on some US products.
EU sources say they will still ask WTO for the right to impose tariffs, but hope not to have to use them.
