There has been swift reaction to Donald Trump's plan to impose steep new tariffs on steel and aluminium imports into the United States.

Dire warnings are being sounded of its potential effect on trade, and thousands of jobs worldwide, although the US president is standing by his plan.

Trump said on Thursday he would formally announce duties of 25 percent on steel and 10 percent on aluminium next week, although White House officials later said some details still needed to be ironed out.

He said he believes the tariffs will safeguard American jobs, but many economists say the impact of price increases for users of steel and aluminium, such as the car and oil industries, will destroy more jobs than curbs on imports create.

The announcement sent Asian stocks into free fall, with investors - and members of Trump's Republican party - warning of a global trade war.

But Trump argues the moves will rebuild US industry, and that other countries had treated them unfairly for decades.

"He was making good on a campaign promise to revive US manufacturing and address a trade imbalance with China, which saw him win big in Rust Belt states like Pennsylvania where he promised to bring back jobs," Al Jazeera's Kristen Saloomey, reporting from New York, said.

"But it's unclear whether the tariffs will apply to other trade partners like Canada from whom the US imports the most steel."

In fact, Canada has said it will retaliate against any restrictions on trade - and its views have been echoed by the European Union.

Germany has criticised strongly the US decision. Sigmar Gabriel, the foreign minister, said such punitive tariffs would mostly affect European industries, warning that it might also spark an international trade conflict.

"The EU has to respond in a determined manner to punitive tariffs by the US which would jeopardise thousands of jobs in Europe. There should be no doubt about that for those in Washington," Gabriel said in a written statement.

He said that a confrontation between the European Union and the US over trade affairs would be in the interests of neither the Europeans nor the Americans.

"When two people quarrel, a third rejoices. Therefore I hope that the president would reconsider his announced plans. We must do everything to prevent an international trade conflict," Gabriel said.

Separately, Bruno Le Maire, France's finance minister, said on Friday that Europe would retaliate with a firm joint response if the Trump administration goes ahead with "unacceptable" tariffs on imported steel and aluminium.

Le Maire said that "all options are on the table" including retaliation before the World Trade Organisation and countermeasures to limit European imports of US goods.

"The United States needs to know that if it goes ahead with these measures, they will meet with a strong, coordinated and united response from the European Union," Le Maire said at the ministry.

"These unilateral measures are not acceptable."

Referring to the Luxembourg-based European steel producer ArcelorMittal, he said they would have a major impact on the European economy and French companies like Vallourec and Arcelor.

Le Maire said Europe and the US needed to jointly tackle the problem of some countries heavily subsidising their producers, which makes it possible to dump their products abroad at prices below the cost of production.

"A trade war between Europe and the United States will only have losers," Le Maire said, adding that he would call his German and British counterparts on Friday to discuss the matter.

Alexander Winterstein, European Commission deputy chief spokesperson, said: "We strongly regret this step, which appears to represent a blatant intervention to protect US domestic industry and not to be based on any national security justification.

"Protectionism cannot be the answer to our common problem in the steel sector. Instead of providing the solution, this move can only aggravate matters. The EU has been a close security ally to the US for decades.

"We will not sit idly while our industry is hit with unfair measures that put thousands of European jobs at risk. The EU will react firmly and commensurately to defend our interests."

For his part, Hiroshige Seko, Japan's minister of economy, trade and industry, said: "We hope to find the opportunity to tell the United States that steel and aluminium imports from Japan, which is an allied nation, pose absolutely no threat to its national security."

Meanwhile, Hua Chunying, China's ministry of foreign affairs spokesperson, said: "The US has already taken at least 100 countermeasures against imported steel and aluminium products, providing excessive protection for domestic markets.

"If all countries followed the US example, this would result in a serious impact on the international trade order."</s>President Donald Trump’s proposal to impose steep tariffs on imported steel and aluminum have raised fears of an international trade war.

The plan, debated intensely within the White House, is to levy a 25% tax on steel imports and a 10% tax on aluminum imports by 10%.

But foreign countries that are impacted may retaliate with their own tariffs on U.S. products. In other words, a trade war. Here’s what that means, how it could impact the U.S. economy, and whether you should be worried.

A trade war is when a country imposes tariffs or other barriers on imported products, prompting other countries to retaliate by implementing similar taxes or penalties.

Trump has actually already declared a “trade war” by calling for tariffs on steel and aluminum imports, says Manuel Perez-Rocha, an Associate Fellow of the Institute for Policy Studies. “What we can expect our trade partners to elicit legal challenges under WTO [World Trade Organization] rules and start retaliation against American exports,” he told .

When was the last time the U.S. had a trade war?

The last trade war was in the 1930s, and intensified the effects of the Great Depression, according to economists and trade experts. It started after President Herbert Hoover signed the Smoot Hawley Tariff Act into law in 1930, which raised tariffs on more than 20,000 products.

Trump advisers argue that the current administration’s tariffs, which are targeted only at steel and aluminum, are not the same as the protectionist Smoot Hawley provisions that raised tariffs on many products and all countries. But some experts say the current proposal could still kick off a full-blown trade war.

“If China and Mexico retaliate against the United States, that would be similar to Smoot-Hawley,” says Doug Irwin, an economics professor at Dartmouth and author of .

Why does Trump want a trade war?

Trump has a “maniacal focus” on trade deficits, according to Joshua Meltzer, a senior fellow at the Brookings Institute. This kind of tit-for-tat strategy loses the bigger picture of U.S. trade relationships.

“[A]n upheaval in trade would swamp all the potential gains from slashing regulations and taxes,” Shawn Tully wrote at the outset of Trump’s tenure. “Odds are that a full-on breakout of protectionism would cause the value of the dollar to spike, shrink-exports, and hobble growth.”

Douglas Holtz-Eakin, the president of the American Action Forum, a center-right advocacy group, and a former director of the Congressional Budget Office under George W. Bush, called a trade war “the big risk to [Trump’s] success.”

Perez-Rocha, the Institute for Policy Studies fellow, said: “A full blown trade war is dangerous for both sides. U.S. exporters can be badly damaged as well, from planes to canned products.”

Will there be a trade war with China?

“If all countries follow the example of the United States, this will undoubtedly result in a serious impact on the international trade order,” Chinese foreign ministry spokeswoman Hua Chunying said Thursday morning at a press conference.

And it’s not just the U.S. trade relationship with China that’s in jeopardy.

Perez-Rocha says, “The main US trade partners, including Canada, the European Union, Mexico, Japan, China and Brazil, have all said they are weighing countermeasures to the new steep tariffs.”

Avoiding a trade war would mean “dealing with perceived trade imbalances or distortions multilaterally, not unilaterally and abruptly like Mr. Trump has done,” he added. “Instead of trying to keep partners down, specially China, U.S. global leadership should be based on trying to align interests — precisely the contrary of Trump’s offensive mentality.”</s>Media playback is unsupported on your device Media caption Trump on new tariffs: 'We haven't been treated fairly'

US President Donald Trump has stepped up his war of words over trade tariffs, threatening to "apply a tax" on imports of cars from the European Union.

Mr Trump said other countries had taken advantage of the US for years because of its "very stupid" trade deals.

The trade wrangle began on Thursday when Mr Trump vowed to impose hefty tariffs on steel and aluminium imports.

That brought a stiff response from trading partners and criticism from the IMF and WTO.

EU trade chiefs have reportedly been considering slapping 25% tariffs on around $3.5bn (£2.5bn) of imports from the US, following Mr Trump's proposal of a 25% tariff on imported steel and 10% on aluminium.

They would target iconic US exports including Levi's jeans, Harley-Davidson motorbikes and Bourbon whisky, European Commission head Jean-Claude Juncker said.

What has Mr Trump said now?

In a tweet on Saturday, the president said: "If the EU wants to further increase their already massive tariffs and barriers on US companies doing business there, we will simply apply a Tax on their Cars which freely pour into the US.

"They make it impossible for our cars (and more) to sell there. Big trade imbalance!"

A second tweet decried the "$800 Billion Dollar Yearly Trade Deficit because of our 'very stupid' trade deals and policies".

Mr Trump added: "Our jobs and wealth are being given to other countries that have taken advantage of us for years. They laugh at what fools our leaders have been. No more!"

How many EU-made cars go to the US?

The US is the largest export market for EU cars - making up 25% of the €192bn (£171bn; $237bn) worth of motor vehicles the bloc exported in 2016 (China was second with 16%).

Germany is responsible for just over half of the EU's car exports, so new US tariffs would hurt the car industry there. But German carmakers also build hundreds of thousands of cars in the US every year - providing many US jobs that German officials say Mr Trump overlooks.

Do fellow Republicans back Mr Trump's trade threats?

A number have questioned the wisdom of the tariff proposal and have been urging the president to reconsider.

Image copyright Getty Images Image caption A VW dealership in California. Mr Trump says there is a "big trade imbalance"

Senator Orrin Hatch said: "I'm very surprised, he's had very bad advice from somebody down there. The people who are going to have to pay these tariffs are going to be the American citizens."

Senator Ben Sasse said: "Kooky 18th Century protectionism will jack up prices on American families - and will prompt retaliation."

And industry bodies like the US Motor and Equipment Manufacturers Association have expressed deep concern, saying the benefits from the recent cuts in corporation tax "could all be for naught".

But Mr Trump's Commerce Secretary Wilbur Ross stood firmly behind the plans, saying the president was "fed up with the continued over-capacity, he's fed up with the subsidisation of exports to us".

Why does he want to impose tariffs?

It chimes with his "America First" policy and the narrative that the US is getting a raw deal in its trade relations with other countries.

Mr Trump tweeted on Friday that the US was "losing billions of dollars" and would find a trade war "easy to win".

The president is using a clause in international trade rules which allows for tariffs for national security reasons.

But his move has not come totally out of the blue.

The commerce department recommended tariffs in February after conducting a review under rarely invoked national security regulations contained in a 1962 trade law.

Mr Trump had already announced tariffs on solar panels and washing machines in January.

What has the international response been?

The IMF said others could follow the US leader's precedent by claiming tough trade restrictions were needed to defend national security.

Canada said tariffs would cause disruption on both sides of the border. Prime Minister Justin Trudeau slammed the tariffs as "absolutely unacceptable".

He told reporters in Ontario he was "confident we're going to continue to be able to defend Canadian industry".

It is one of several countries, including Brazil, Mexico and Japan, that have said they will consider retaliatory steps if the president presses ahead with his plan next week.

World Trade Organization Director General Roberto Azevedo said: "A trade war is in no-one's interests."

But Mr Trump tweeted, "Trade wars are good."

Are trade wars good?

Analysis by Theo Leggett, business correspondent

If trade wars really were good and easy to win, the World Trade Organization probably wouldn't exist.

Most countries believe that negotiations are best carried out and disputes settled through a rules-based system. Introducing trade barriers on a tit-for-tat basis has the potential to harm companies on both sides.

But that's unlikely to bother Mr Trump. His campaign rhetoric drew heavily on the perceived threat to traditional US industries from foreign interlopers acting unfairly. He's simply continuing in that vein.

And it's unlikely to register much with the steelworkers of Pennsylvania and Indiana. Concerned about their jobs and the future, many will welcome Mr Trump's comments.</s>related media assets (image or videos) available. Click to see the gallery.

2 related media assets (image or videos) available. Click to see the gallery.

U.S. President Donald Trump has spoken to multiple world leaders about tariff hikes on steel and aluminum but still has no plans for exemptions, Commerce Secretary Wilbur Ross said on Sunday, but he would not rule out the prospect.

WASHINGTON: A top trade adviser to U.S. President Donald Trump said on Sunday a process will be in place for businesses to get exemptions from the White House plan to place steep tariffs on steel and aluminum, offering the first indication a tariff hike could be less broad than first thought.

Peter Navarro, director of the White House National Trade Council, said countries will not be excluded from the tariffs because that would become a slippery slope, but there will be a mechanism for corporate exemptions in some cases.

"There will be an exemption procedure for particular cases where we need to have exemptions, so that business can move forward," Navarro said on CNN's "State of the Union" program.

The scenario of possible exceptions came after Trump's surprise announcement on Thursday and subsequent aggressive business lobbying against the tariffs, an outcry from U.S. trading partners and criticism from fellow Republicans.

Trump has spoken to world leaders about the planned tariff hikes but has given no indication he would allow exemptions, Commerce Secretary Wilbur Ross said on Sunday.

Navarro did not elaborate on the exemption procedure and the White House did not immediately return a request for comment.

Navarro and Ross, who have advocated stronger trade policies to reduce U.S. trade imbalances, went on Sunday U.S. television news shows to try to contain the global fallout from Trump's announcement.

The president said the United States would impose duties of 25 percent on imported steel and 10 percent on aluminum to protect domestic producers. The plan stunned U.S. trading partners, alarmed American industry leaders and roiled stock markets.

Josh Bolten, chief executive officer of the influential Business Roundtable, told "Fox News Sunday" program the tariffs would cause "huge damage" across the economy without affecting China.

A frequent target of Trump's criticism on trade, China accounts for 2 percent of U.S. steel imports.

A number of Republicans, including congressional leaders, urged Trump to hold back on the tariffs.

At North American trade talks in Mexico City, Republican Representative Kevin Brady, the top U.S. lawmaker on trade policy, said the administration should exempt current aluminum and steel contracts to avoid business uncertainty.

"I believe there should be a quick and timely exclusion process for existing contracts, as well as for existing businesses," he said.

Energy industry officials raised concerns about the tariffs on steel since the sector relies on imports.

"The U.S. oil and natural gas industry, in particular, relies on specialty steel for many of its projects that most U.S. steelmakers don’t supply," American Petroleum Institute President Jack Gerard said last week.

The steel used to make large-diameter, thick-walled pipe for interstate natural gas and oil pipeline projects are not available off the shelf or from a wide variety of manufacturers, according to the Interstate Natural Gas Association of America.

Numerous world leaders and ministers have been in touch with Trump and U.S. officials including Ross, suggesting an intensive behind-the-scenes effort to change the president's mind, the commerce secretary said.

British Prime Minister Theresa May told Trump she had "deep concern" about the expected tariffs, May's office said on Sunday following a phone call between the two leaders. May said "multilateral action was the only way to resolve the problem of global overcapacity in all parties’ interests."

Ross said there was no indication yet that Trump would consider exemptions for countries, but he did not rule it out.

"We'll see. The president makes the decision," Ross said on NBC's "Meet the Press" program.

Canada, the biggest steel supplier to the United States, is trying to secure an exemption from potential U.S. tariffs on steel and has threatened retaliation if the plan goes ahead.

Ross said the proposed tariffs represent a fraction of 1 percent of the U.S. economy so they would not have a great impact.

The commerce secretary dismissed European Union threats of retaliatory tariffs on flagship American products, including Harley Davidson motorcycles, bourbon and Levi's jeans, calling the US$3 billion in affected goods a "pretty trivial" amount.

On Saturday, Trump threatened European automakers with a tax on imports if the European Union retaliates.</s>A White House official says President Donald Trump plans to announce Thursday whether he’ll impose tariffs or quotas on steel and aluminum imports. (AP Photo/Carolyn Kaster)

If Canadians are hoping to be spared from American tariffs, they may be disappointed.

A White House official is telling the U.S. Sunday talk shows that President Donald Trump has made up his mind: steel and aluminum tariffs will apply to everyone.

That includes America’s No. 1 supplier of both: Canada.

White House trade official Peter Navarro, making the rounds of weekly talk shows, says that excluding one country will create a slippery slope — he says tariffs would go up on the remaining countries, and everyone else would demand the same treatment as Canada.

He is being repeatedly pressed on the Canada issue in these interviews. Show hosts are asking him how the White House can possibly justify using a national security excuse for imposing tariffs on a close NATO partner, and official member of the U.S. military-industrial complex.

Navarro did leave one hopeful possibility for Canada: he says that while no countries will be excluded, some key industries might be. Of special concern to Canada is the auto industry — and how these tariffs would play havoc with cross-border supply chains.</s>Trade Minister Steve Ciobo is urgently seeking a call with his US counterpart to push for an Australian exemption to Trump administration tariffs on steel and aluminium exports.

The move has sparked global criticism and a slump in stock markets.

A spokesman for Mr Ciobo said the minister is hoping to speak with US Trade Secretary Wilbur Ross this weekend.

An estimated $274 million of Australian steel and $276 million of Australian aluminium could be caught up in the saga.

US President Donald Trump has confirmed he will sign off on the tariffs, with China the main target.

"When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win," Mr Trump tweeted on Friday.

Prime Minister Malcolm Turnbull raised the exemption issue with Mr Trump during his recent US visit.

Mr Ciobo has also raised concerns about potential retaliatory action by other major economies leading to a slowdown in economic growth.

The European Union has has drawn up a hit list of US products from bourbon to Harley Davidson motorbikes on which to apply tariffs if Mr Trump follows through with the plan to apply global duties on aluminium and steel.

"We will put tariffs on Harley-Davidson, on bourbon and on blue jeans - Levis," European Commission President Jean-Claude Juncker told German television.</s>As it is written in Article II, Section 3 of the United States Constitution, President Donald Trump addressed a joint session of Congress. It was a long night, and while the pundits are debating just how "presidential" it was, here are the most bonkers moments.

1. The drama started before the speech did: Melania Trump traveled in a separate car from her husband, perhaps because of Stormy weather.

JUST IN: First lady Melania Trump arrived at the State of the Union address separately from the President, a break in a longstanding tradition https://t.co/b93X55OK92 pic.twitter.com/HLUBHPlPHL — CNN Breaking News (@cnnbrk) January 31, 2018

2. Paul Ryan made a Freudian slip and almost said "preventing" instead of "presenting" in introducing Trump?

3. Trump bragged about the low African American unemployment rate, and the Congressional Black Caucus​​​​​​ was thinking "Thanks, Obama."

Black & Hispanic Unemployment: Facts for when Trump tries to take credit for continuation of Obama trend:

 

 Black Unemployment Had Already Been Cut More than Half:

 1/2010 16.5%

 1/2017 7.8%

 

 Hispanic Unemployment Had Already Been Cut More than Half

 1/2010 12.9%

 1/2017 5.9% — Gene Sperling (@genebsperling) January 31, 2018

It's even better in GIF form.</s>Theresa May has told Donald Trump of her "deep concern" over his plan to raise tariffs on steel and aluminium imports.

In a tweet, the President has said the US' tariff system on steel was "not fair or smart".

Read more: Last Week in the City: Trump threatens trade war

"When a country taxes our products coming in at, say, 50 per cent, and we tax the same product coming into our country at zero, not fair or smart," he said.

"We will soon be starting reciprocal taxes so that we will charge the same thing as they charge us."

May said in a phone call to Trump earlier today that countries should work together to tackle overcapacity, and raised her concerns about his policy.

Trump has also attacked the EU, saying the US will tax car imports from the bloc if it increases tariffs on US businesses in the car industry.

"They make it impossible for our cars (and more) to sell there," Trump said in a tweet overnight. "Big trade imbalance!"</s>WASHINGTON (AP) — The Latest on President Donald Trump and trade (all times local):

Facing criticism from allies overseas and members of his own party, President Donald Trump is signaling he is not backing down from his plan to place tariffs on imports of aluminum and steel.

Trump tweets Sunday night that the American "steel and aluminum industries are dead. Sorry, it's time for a change!"

Trump is readying to place tariffs of 25 percent and 10 percent on steel and aluminum imports, respectively.

The protectionist move fulfills a campaign promise to protect American manufacturers, but is pitting him against free-market Republicans and American trading partners who are warning it would ignite a trade war.

British Prime Minister Theresa May called Trump on Sunday to register her displeasure with the impending action.

British Prime Minister Theresa May has spoken with President Donald Trump and expressed "deep concern" about his threatened trade war with the European Union.

May's office says she discussed the issue with Trump during a telephone call Sunday.

Trump has threatened to tax European cars if the EU boosts tariffs on American products in response to the president's plan to increase duties on steel and aluminum.

May's office says she "raised our deep concern at the president's forthcoming announcement on steel and aluminum tariffs, noting that multilateral action was the only way to resolve the problem of global overcapacity."

The leaders also discussed Syria and humanitarian concerns in eastern Ghouta. May's office says they agreed "the overwhelming responsibility" for suffering falls on the Syrian government and Russia, its main backer.

An influential Republican senator says President Donald Trump is "making a huge mistake" with his plan to impose steep tariffs on imported steel and aluminum.

South Carolina Sen. Lindsey Graham is joining a growing number of Republicans and business groups in criticizing the president's tariff plans. He says Trump is "letting China off the hook." Graham says "China is winning and we're losing with this tariff regime."

Graham tells CBS' "Face the Nation" that Trump is picking a fight with American allies in Europe in a way that plays into China's hands. He says Trump should "go after China, not the rest of the world."

A senior member of British Prime Minister Theresa May's Cabinet has chastised President Donald Trump for threatening a trade war with the European Union.

Cabinet Office Minister David Lidington's comments Sunday on the BBC came after Trump threatened to tax European cars if the EU boosts tariffs on American products in response to the president's plan to impose tariffs on steel and aluminum.

Lidington says "the United States is not taking an advisable course in threatening a trade war," adding that "trade wars don't do anybody any good."

Lidington also says Britain's experience shows that protectionism doesn't work. He says when the U.K. tried to protect its car industry in the 1960s and '70s "we lost all our export markets" because other countries were more competitive.

A business leader wants President Donald Trump to have "the courage" to step back from his campaign rhetoric on trade.

The Business Roundtable's Josh Bolten, a chief of staff for President George W. Bush, tells "Fox News Sunday" that "every modern president has faced some trade skirmishes during their time but they've all been wise enough not to let it descend into outright trade war."

Bolten praises Trump for following through on campaign promises to cut taxes and federal regulations, but trade is another matter.

He says: "Sometimes a president needs to, you need to stick to your principles but you also need to recognize in cases where stuff you said in the campaign isn't right and ought to be drawn back. The president needs to have the courage to do that."

White House trade adviser Peter Navarro says President Donald Trump's planned steel and aluminum tariffs won't have any exemptions for certain countries.

Speaking on CNN's "State of the Union," Navarro says: "At this point in time there's no country exclusions."

American allies including Canada have protested the planned protectionist move by the president, saying they shouldn't be covered by Trump's planned 25 percent tariffs on steel and 10 percent on aluminum.

The Pentagon recommended "targeted" tariffs, so as not to upset partners. But Navarro says Trump decided on wide-ranging import charges because he seeks to boost American manufacturers.

"As soon as you exempt one country, then you have to exempt another country," Navarro says.

Commerce Secretary Wilbur Ross says "I believe so" when asked whether President Donald Trump will make a formal announcement this week about trade penalties on imported steel and aluminum.

There's been speculation Trump may consider exempting some U.S. allies. But Ross says, "As far as I know he's talking about a fairly broad brush. ... I have not heard him describe particular exemptions just yet."

Ross is dismissing the fallout from potential retaliation by the European Union.

He tells ABC's "This Week" that "sure there may be some sort of retaliation, but the amounts that they're taking about are also pretty trivial." He says the EU has threatened tariffs on $3 billion-plus worth of U.S. goods.

In Ross' words: 'Overall it's not going to be much more than a rounding error."

Few issues could blur the lines of partisanship in Trump-era Washington.

Trade is one of them.

President Donald Trump's announcement that he'll impose stiff tariffs on imported steel and aluminum has labor unions and liberal Democrats in the unusual position of applauding his approach.

Republicans and an array of business groups are warning of dire economic and political consequences if he goes ahead with the trade penalties.

Trade politics often cut along regional, rather than ideological, lines. That's because politicians reflect the interests of the hometown industries and workers.

But rarely does a debate open so wide a rift between a president and his party — leaving him almost exclusively with support from his ideological opposites.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>President Donald Trump threatened to hit car exports from the European Union with a retaliatory tax, escalating a brewing global fight with U.S. trading partners triggered by newly announced 25 percent U.S. tariffs on imported steel and aluminum.

In a post on Twitter, Trump cited a "big imbalance" between the two countries, said if the 28-nation bloc insisted on imposing punitive taxes on U.S. goods, America would strike back on European car exports. It was an apparent response to European officials threatening policy changes of their own in the wake of Trump's sudden pronouncement on metal imports.

"If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a tax on their cars which freely pour into the U.S.," the president said on Twitter.

That could spell trouble for car manufacturers like Volkswagen and BMW, two of the most popular European brands sold in the U.S. The German luxury car maker also manufactures many of its cars in America, shipping billions of dollars worth abroad.

In 2016, the EU shipped more than 6 million cars abroad, and the U.S. — its largest market by far — absorbed more than 1 million of those, according to the European Automobile Manufacturers Association.

Each year, the U.S. imports more from Europe than the continent absorbs in American goods, to the tune of a trade deficit totaling more than $151 billion in 2017, according to U.S. Census data.

Trump's hasty decision to impose tariffs on steel imports has stoked talk of a brewing trade war, roiling both the political establishment and the global economic order. The move also prompted E.U. trade chiefs to weigh hitting a broad array of U.S. imports with a 25 percent tax, Reuters reported this week.


In a message on Twitter, U.S. President Donald Trump says the U.S. will apply a tax on cars made in the European Union if the E.U. "further" increases tariffs.