The European Union (EU) has announced it will impose retaliatory tariffs on the US after levies on steel and aluminum took affect today.
President Donald Trump has stepped up his global trade war after raising flat duty on steel and aluminum entering the US to 25%, ending all country exemptions to the levies.
The EU’s response to the Trump administration’s tariffs will affect €26billion (£21.9billion) of US goods from April 1.
European Commission chief Ursula von der Leyen said: “We deeply regret this measure.
“Tariffs are taxes. They are bad for business, and even worse for consumers."
She added: “We will always remain open to negotiation. We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs.”
Reacting to the introduction of the tariffs, William Bain, BCC head of trade policy, said: “This is a difficult day for trans-Atlantic trade and plunges businesses, in both the US and UK, into a new age of uncertainty.
“Tariffs mean prices and costs will inevitably go up and this is a lose-lose scenario for consumers, businesses, and economic growth. More tariffs are also on the agenda for the start of next month which will add fresh uncertainty into the mix.
“But today’s setback does not mean we have reached the end of the road in terms of negotiations. Tariffs can be lifted at any time.
“Businesses will be looking to the UK government to continue dialogue, with the US, to resolve this situation and restore certainty for firms, which has been badly lacking over recent weeks.
“We must keep talks alive and retaliatory tariffs should only be used as a means of last resort."
Donald Trump has already imposed separate 25% tariffs on other imports from Mexico and Canada, but has threatened to double tariffs on its Canadian neighbors following its retaliation to the tax.
Trump's threats has sparked volatility across Wall Street, as America’s S&P 500 fell by as much as 1.5%.
Global investor panic led to the UK’s FTSE 100 falling by another 1.2%, losing 4.2% since the start of last week. The dollar also fell to its lowest level since Mr Trump’s election victory in November.
FTSE 100
The UK's flagship share index, the FTSE 100, was down 60-points at 8,518 shortly after opening this morning.
Brent crude oil futures were up 0.44%, trading at $69.58 a barrel.
Companies reporting today
12-Mar | |
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4imprint Group | Full Year Results |
Balfour Beatty | Full Year Results |
Ferrexpo | Full Year Results |
Hill & Smith | Full Year Results |
Hochschild Mining | Full Year Results |
Legal & General* | Full Year Results |