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.

In Donald Trump’s first 36 hours back in the White House, he threatened to slap tariffs on the US’s top four trading partners starting as soon as next week.

U.S. President Donald Trump on Tuesday vowed to hit the European Union with tariffs and said his administration was discussing a 10% punitive duty on Chinese imports because fentanyl is being sent from China to the U.

U.S. President Donald Trump has promised to address a longstanding trade deficit with the European Union, saying he will reverse that by imposing tariffs or making the EU buy more U.S. oil and gas. In an "America First Trade Policy" memo issued on his first day back in the White House on Monday,

President Donald Trump widened his tariff threats to include China and the European Union on his second day back in office after day one saw Canada and Mexico in his sights.