Trade war escalates as China, EU slap US with retaliatory tariffs

China and the European Union (EU) announced new trade barriers on US goods on Wednesday in response to steep duties imposed by US President Donald Trump, escalating a global trade war that has hammered markets and raised the likelihood of recession.

The EU said it would impose 25 per cent tariffs on a range of US imports in a first round of countermeasures. The 27-member bloc faces US tariffs of 20pc on most products and higher duties on autos and steel.

Countermeasures in Canada...