US President Donald Trump on Tuesday vowed to hit the European Union with tariffs, saying his administration was discussing a 10 percent punitive duty on Chinese imports because fentanyl is being sent from China via Mexico and Canada.

EU, German and Chinese leaders took turns defending global cooperation in Davos on Tuesday as the spectre of new trade wars looms following Donald Trump's return to the White House.

EU trade chief Maroš Šefčovič extended an olive branch to Washington on Wednesday, two days after the U.S. president was sworn in. He told POLITICO that Brussels was ready to talk with the new Washington administration — despite the repeated threats that Trump has made to hit the 27-nation bloc with tariffs.