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Trump's trade war hits closest U.S. allies

Trump and Angela Merkel after a White House press conference in April. Photo: Mark Wilson/Getty Images

The Trump administration has decided to impose steel and aluminum tariffs on European countries, as well as Canada and Mexico.

Why it matters: Trump's trade war now extends far beyond China, and is hitting the closest U.S. allies. EU Commission president Jean-Claude Juncker said the EU has "no choice" but to retaliate — with previously floated targets including Harley Davidson motorcycles and Kentucky bourbon — while Mexico has already announced it will hit "pork bellies, grapes, apples and flat steel," per the AP. The news also comes amid NAFTA negotiations with Canada and Mexico.