• Video report by ITV News Washington Correspondent Robert Moore

The Trump administration has announced it will impose tariffs on steel and aluminium imports from Europe, Mexico and Canada after failing to win concessions from the American allies.

The decision could provoke retaliatory penalties and exacerbate trans-Atlantic and North American trade tensions.

US commerce secretary Wilbur Ross said the tariffs would be 25% on steel and 10% on aluminium as the administration followed through on the penalties after earlier granting exemptions to buy time for negotiations.

We continue to be quite willing and indeed eager to have further discussions

Wilbur Ross, US commerce secretary

Mr Ross told reporters that talks with Canada and Mexico over revising the North American Free Trade Agreement were “taking longer than we had hoped”.

Talks with Europe had “made some progress” but not enough for additional exemptions, he said in a conference call from Paris.

“We continue to be quite willing and indeed eager to have further discussions,” Mr Ross said.

He said he planned to travel to China on Friday for trade talks between the world’s two biggest economies.

European officials had braced for the tariffs and the EU has threatened to retaliate against US orange juice, peanut butter and other goods in return.

In terms of the Nafta talks, the tariffs could hinder the negotiations among the North American neighbours.

Fears of a global trade war are already weighing on investor confidence and could hinder the global economic upturn.

European officials argue that tit-for-tat tariffs will hurt growth on both sides of the Atlantic.