The US has made the EU an offer to stop charging an import tariff on the union's steel – a change that could take place before the year is out, reports Bloomberg News.
An anonymous source says the proposal was negotiated in the US last week.
The offer is said to involve a quota system entailing a lower import tariff on steel.
Aluminum is also subject to an import levy, albeit only 10 percent, but is not included in the US' offer, the source tells the media.
The EU and US are now engaged in intense talks, an unnamed source tells Bloomberg News.
On Sept. 29, the transatlantic trade war will appear on the agenda of a diplomatic meeting to held in Pittsburgh, according to another source.
In an email sent to the business media, the EU Commission confirms having communicated with its US counterpart about a creating a solution before Dec. 1 this year. However, the Commission has declined to elaborate.
Communicating with the EU earlier this year, the US characterized the matter of surplus production capacity for steel as a shared problem caused by China.
In May, the EU and US avoided further trade dispute escalation after agreeing to not impose levies on products such as whiskey and Harley Davidson motorcycles.
The US Department of Commerce has not provided comment.
Three years back, former US President Donald Trump introduced the import tariffs, at the time setting 25 percent on steel and 10 percent on aluminum.