The EU hopes to avoid a trade war with the United States through negotiations

The European Union is bracing itself for a transatlantic trade war, but news that U.S. President Donald Trump has delayed imposing tariffs on Mexico and Canada has boosted the bloc's confidence that there is hope for an acceptable outcome through negotiations in the region as well.

Bloomberg, citing people familiar with the matter, said Trump's stance on Canada and Mexico in turn informed the European Commission's strategy, which is prepared to respond modestly to the president's tariff threats to avoid angering Washington.

But the source, who asked not to be named, said a major obstacle to the EU's strategy is that it has not been able to establish good links with the Trump administration. Some key trade officials in Trump's cabinet are still awaiting Senate confirmation.

According to people familiar with the matter, the EU will seek to resolve the conflict with the United States on the issue of steel and aluminum exports.

Trump said this week that he would "certainly" impose tariffs on the EU given the large U.S. trade deficit with the bloc. Bloomberg reported earlier that the European Commission has prepared a long list of retaliation.

Commission President Ursula von der Leyen told reporters Monday after a meeting of EU leaders that "if it is unfairly and arbitrarily targeted, the EU will respond firmly."

It is not clear what Mr. Trump wants from the European Union, and his longstanding anger toward Europe is harder to find.

The EU plans to follow a similar strategy during a trade conflict with the United States in 2018, people familiar with the matter said. At a meeting of trade ministers in Warsaw on Tuesday, the commission shared few ideas about a countermeasure plan with member states.