DONALD Trump has extended his punishing trade war to now impact on the entire world as fears grow for key UK industries.
The US president announced he is placing 25 per cent tariffs on all steel and aluminium imports coming in to the US – with the EU already hitting back hard.
Donald Trump has extended his punishing trade war to now impact on the entire worldThe Mega Agency
GettyThe US President announced he is placing 25 per cent tariffs on all steel and aluminium imports coming in to the US[/caption]
GettyEuropean Commission President Ursula von der Leyen has already hit back at Trump’s tariffs saying the EU ‘must act’ to protect consumers and business[/caption]
The European Union has announced a huge two-stage retaliation against the US which will cover €26 billion in EU exports.
From April 1, the European Commission says it will reimpose tariffs in response to Trump’s global tariffs.
This will have a direct impact on many iconic American brands such as Harley-Davidson.
Then from mid-April, further countermeasures will be applied if Eu member states all approve.
European Commission President Ursula von der Leyen said today: “We deeply regret this measure.
“Tariffs are taxes. They are bad for business, and even worse for consumers.
“These tariffs are disrupting supply chains. They bring uncertainty for the economy.
“Jobs are at stake. Prices will go up. In Europe and in the United States.
“The European Union must act to protect consumers and business.”
They added that any decision can always be reversed if the Trump administration is ready to “find a negotiated solution”.
Trump’s tariffs are also set to have a huge impact on the UK steel industry.
They have already warned the decision to impose a transatlantic trade war “couldn’t come at a worse time”.
The British government has already said they don’t want to retaliate and would rather come to an amicable solution.
Chancellor Rachel Reeves announced last week that tit-for-tat tariffs only risk slowing down the whole global economy.
She said she didn’t think tariffs “serves anyone well”.
Adding: “We don’t want to see tariffs. I will continue to make the case with all my international counterparts for free and open trade.”
President Trump initially only targeted Mexico, Canada and China with his trade war before opening them up to the world.
His plan is designed to protect US manufacturing and bolster job opportunities by making internationally made products more expensive and less attractive to buy.
It will also threaten to make the cost of many things such as cars more expensive.
On Tuesday, Trump again threatened Canada with historic financial punishment as they threatened to impose their own 25 per cent tariffs on electricity in three US states.
The brewing trade war between the two neighbouring countries deepened this week after Trump doubled the 25 per cent levy on Canadian steel and aluminium.
It came in response to the Ontario government’s threat of an electricity surcharge.
Ontario Premier Doug Ford soon said he was temporarily suspending his province’s planned purchase on electricity exported to the US after Trump’s fiery response.
Ford made a U-turn on the threats after US Commerce Secretary Howard Lutnick agreed to go back to the table on trade talks.
Ford said that Canadian delegates will travel to Washington within the next day or two to meet with Lutnick.
Trump’s seismic trade war came as he spent the day on the White House lawn trying out Teslas with right-hand man Elon Musk.
Musk brought an entire fleet of the electric vehicles to let the president have his pick of the litter for the purchase.
The Mega AgencyTrump’s decision came after he spent the day with pal Elon Musk[/caption]
The Mega AgencyTrump was testing out the Tesla Model S with Musk at the White House[/caption]