President Trump vows to respond to EU's new tariffs amid ongoing trade war

President Donald Trump vowed to respond to the European Union's new tariffs on the United States as a transatlantic trade war ramps up.

The EU slapped new tariffs on American goods in response to Trump's decision to implement a 25 percent increase in tariffs on incoming steel and aluminum. 

'Of course, I am going to respond,' he told reporters in the Oval Office on Wednesday.

Trump didn't specify how he intended to hit back at the EU and its decision but argues he is imposing the tariffs to 'take back' American wealth.

The president has also beefed up tariffs on all steel and aluminum imports, sparking a bitter trade war. 

Canada also responded to Trump's new tariffs, announcing $21 billion in new tariffs targeting imports of U.S. computers and sports gear.

The EU is targeting U.S. industrial and farm products from Republican-led states in its counter tariffs, focusing on American meat, bourbon, motorcycles, bourbon, peanut butter, and jeans.

The move will cost American companies billions and escalate the trade war between the U.S. and its partner across the pond. The new tariffs go into place April 1.

Prices will go up, in Europe and the United States, and jobs are at stake, warned European Commission President Ursula von der Leyen.

We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers,' Von der Leyen said. 

Trump's steel and aluminum tariffs will likely increase the cost of producing goods from home appliances to automobiles and cans used for drinks.

Even with the threats from the EU and Canada, Trump is refusing to back down, arguing the U.S. is being taken advantage of. 

'The E.U. was set up in order to take advantage of the United States,' Trump said.