The European Union on Wednesday announced retaliatory trade action with new duties on U.S. industrial and farm products, responding within hours to the Trump administration's increase in tariffs on all steel and aluminum imports to 25%.

As tariffs "ramp up", those in Europe will "suffer most" because the EU's most important industries – cars, electrical equipment, appliances – are "exactly those where China has built the biggest advantages" and is "in position to grab the biggest piece" of any available "trade surplus pie".