Trade war erupts as EU imposes counter-tariffs on US products

The European Union has announced its decision of imposing duties on USD 3.3 billion worth of US goods in response to US President Donald Trump's decision to impose harsh import taxes directly affecting the EU.

Some American goods facing taxation by the EU are Harley Davidson motorcycles, bourbon, cranberry juice, denim trousers, metal exports etc.

"We do not want to be in this position. However the unilateral and unjustified decision of the US to impose steel and aluminium tariffs on the EU means that we are left with no other choice," EU Trade Commissioner Cecilia Malmström said in a statement on Wednesday.

Trump had previously threatened to impose tariffs on European cars if Europe retaliated.

The move is expected to escalate the trade war between US and the rest of the world, affecting global stock markets that are already on thin ice due to the trade tensions between economic giants US and China.