American goods are now more expensive after the EU slapped a 25% tariff on goods

The European Union’s retaliatory tariffs come into force today targeting American products, including whiskey, motorcycles and peanuts.

Its duties target goods worth $3.3bn (£2.5bn) after the United States imposed tariffs on the bloc’s steel and aluminium.

President Donald Trump is pushing ahead with his campaign pledge to protect American jobs and has described trading relationship with his neighbours and allies as unfair. He has asked his officials to redraw the rules of trade.

The United States has imposed tariffs on Canada, Mexico and £25bn in Chinese goods. China, India and Turkey have already hit back with their own tariffs on US imports.

European Commission President Jean-Claude Juncker, who has said the bloc would target “Harley-Davidson, bourbon and Levi’s jeans”, said on Thursday the US decision “goes against all logic and history.”

He added: “Our response must be clear but measured. We will do what we have to do to rebalance and safeguard.”