The US has signalled it could exempt certain countries from planned steel and aluminium tariffsMore

That's fractionally more than for United Kingdom exporters, who will be hit with a £27bn bill.

The report noted that in the EU27, the hardest hit sector will be automotive, where the direct impact will be around 2% of current gross value added.

Mr. Juncker says both sides have agreed that there should be no hard border on the island of Ireland and that must be respected.

He said he did not want European Union citizens to "fall victim to Brexit" as he stressed the importance of securing their rights.

"We must recognise the democratic decision taken by Britain to leave the European Union in 2016, just as we must recognise the democratic decision made on the island of Ireland in 1998 with all its consequences", said the former Polish prime minister.

"And I do believe that rationality, common sense will win the day if we conduct ourselves with decorum and patience and I think therefore it's in all our interests to keep the temperature down".

"It would be completely irresponsible to create an atmosphere where we can say, don't worry, everything will go well and smoothly because we simply don't know", Katainen said.

May and EU27 leaders is set to hold a new round Brexit negotiation on March 22 and 23, with hopes for the consolidation of a transition deal immediately following March 29, 2019, when Britain will become a third country.

However, despite Brexit not actually happening until next year, manufacturers will have to make a decision sooner regarding their future in the UK.

"It should come as no surprise that the only remaining possible model is a free trade agreement", European Council President Donald Tusk said in his statement upon publishing the guidelines, refusing much of the vision that May had shared in her Manson speech.

A police officer stands at a cordon around the bench where former Russian intelligence agent Sergei Skripal and his daughter Yulia were found after they were poisoned, in Salisbury, Britain March 11, 2018.

Michel Barnier, the EU's chief negotiator, said he was "surprised" that the prime minister had expected it to accept her demands in the Mansion House speech.

"If in London someone assumes that the negotiations will deal with other issues first, my response would be Ireland first", Tusk said.

"Such an agreement can not offer the same benefits as Membership and can not amount to participation in the Single Market or parts thereof", the text read.

The section on the Irish border was broadly unchanged in the latest draft. It comes as Brussels is accused of acting like gangsters, "throwing threats of violence around" in the negotiating process.

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