Is trade war between EU and US on the horizon?

Is trade war between EU and US on the horizon?

The European Union is ready to react if its industry was hit by US sanctions, European Commission spokesman Margaritis Schinas said.

"We have made it clear to the US administration at the highest level that we would be deeply concerned about measures that affect the EU industry," Schinas told a news conference.

"We would be taking appropriate measures to defend EU industry and we stand ready to react swiftly and appropriately in case our exports are affected by any restrictive measures by the United States," he continued before adding: "No, we are not in a trade war".

A German newspaper reports the European Union is drawing up a list of U.S. products to target — including orange juice and Kentucky bourbon — if Washington restricts imports of aluminum and steel.

The US Commerce Department has recommended that US President Donald Trump impose steep curbs on steel and aluminum imports from China and other countries ranging from global and country-specific tariffs to broad import quotas, according to proposals released on Friday.

The Frankfurter Allgemeine Zeitung daily reported Tuesday the European Commission plans to retaliate with tariffs on US agricultural products, but also whiskey and Harley-Davidson motorcycles.