The Retail Industry Leaders Association (RILA) was quick to condemn the proposal, saying it will punish American consumers.

Moscow has raised tariffs from 25 to 40 percent on some US imports in response to Washington’s move to impose tariffs on Russian steel and aluminum.

Asia is bracing for the opening salvo in a tit-for-tat trade battle, with the US due to impose 25% tariffs on $34bn of Chinese goods on Friday.

The United States could get a new round of retaliatory tariffs worth as much as $300 billion, if it moves ahead with new duties on European cars, the EU has warned.

Canada has retaliated against US steel and aluminum tariffs by slapping its own penalties on American exports.

President Donald Trump brought the world's two biggest economies to the brink of a trade war Friday by announcing a 25 percent tariff on up to $50 billion in Chinese imports to take effect July 6. Here's how it could affect the U.S. economy and consumers. (June 15) AP

Harley-Davidson plans to shift some motorcycle production away from the US to avoid the "substantial" burden of European Union tariffs.

The exemptions will now last until June 1, a move that gives the US and the exempted nations more time to work out deals to help reduce trade imbalances.