Economists had already downgraded growth for the European Union, and the new duties would hit industries there especially hard. Companies are looking for ways to blunt the impact.

Senior EU officials told the FT that they did not expect Trump to ultimately go through with his new threat of 30 per cent tariffs, which is being widely interpreted by Brussels as a bid by the US President to increase pressure on the bloc in the remaining time left for negotiations.

President Donald Trump has announced he’s levying tariffs of 30% against the European Union and Mexico starting Aug. 1