DONALD Trump has extended his punishing trade war to now impact on the entire world as fears grow for key UK industries.

The US President announced he is placing 25 per cent tariffs on all steel and aluminium imports coming in to the US – with the EU already hitting back hard.

The European Union has announced a huge two-stage retaliation against the US which will cover €26 billion in EU exports.

From April 1, the European Commission says it will reimpose tariffs in response to Trump’s global tariffs.

This will have a direct impact on many iconic American brands such as Harley-Davidson.

Then from mid-April, further countermeasures will be applied if Eu member states all approve.

European Commission President Ursula von der Leyen said today: “We deeply regret this measure.

“Tariffs are taxes. They are bad for business, and even worse for consumers.

“These tariffs are disrupting supply chains. They bring uncertainty for the economy.

“Jobs are at stake. Prices will go up. In Europe and in the United States.

“The European Union must act to protect consumers and business.”

They added that any decision can always be reversed if the Trump administration is ready to “find a negotiated solution”.

Trump’s tariffs are also set to have a huge impact on the UK steel industry.

They have already warned the decision to impose a transatlantic trade war “couldn’t come at a worse time”.

The British government has already said they don’t want to retaliate and would rather come to an amicable solution.

Chancellor Rachel Reeves announced last week that tit-for-tat tariffs only risk slowing down the whole global economy.

She said she didn’t think tariffs “serves anyone well”.

Adding: “We don’t want to see tariffs. I will continue to make the case with all my international counterparts for free and open trade.”

President Trump initially only targeted Mexico, Canada and China with his trade war before opening them up to the world.

His plan is designed to protect US manufacturing and bolster job opportunities by making internationally made products more expensive and less attractive to buy.

It will also threaten to make the cost of many things such as cars more expensive.