The European Union announced Wednesday counter tariffs of 26 billion euros ($28.33 billion) on U.S. goods, "matching the economic scope" of President Trump's levies. The big picture: Trump's 25% tariffs on all steel and aluminium imports took effect earlier on Wednesday.

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".