The European Union and the US are headed in the “right direction” in trade talks, though new American levies on steel and aluminum imports aren’t helpful if both sides want to maintain momentum, Maros Sefcovic said after meeting with US Trade Representative Jamieson Greer.

Steel and aluminium exports to the U.S. face a 50% tariff from June 4. Steel producers in Europe, including major exporters in Germany and Sweden, now face a big hit from the increased duties. The U.K.

DUESSELDORF (Reuters) -U.S. tariffs on steel have only a limited direct effect on Thyssenkrupp Steel Europe, the company said on Wednesday, but the increase in import duties brings with it pressure on trade relations more broadly, it warned.