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.

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.

President Donald Trump has once again threatened the EU with duties, and European leaders are vowing to respond in kind.

The Trump administration is discussing a 10% punitive duty on Chinese imports. Trump said the EU also has troubling trade surpluses with the United States.

The European Commission has rejected US President Donald Trump's claims that the United States runs a trade deficit of $350 billion with the European Union. A commission spokesman said the $350-billion deficit does not exist and that the US and the EU have complementary strengths.

U.S. President Donald Trump pledged Tuesday to hit the European Union with tariffs, adding that a 10% duty on Chinese imports could also come as soon as February 1. Trump, who was speaking to reporters at the White House a day after being sworn in,

Donald Trump has headed straight to actions. Right from his first minutes in the White House, he cut the Gordian knot and implemented a major change of course in U.S. economic policy. Not only is he threatening to charge Mexico and Canada a 25% tariff on their products exported to the U.