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,

US President Donald Trump pledged Tuesday to hit the European Union with tariffs, adding that a 10 percent duty on Chinese imports could also come as soon as February 1.

Donald Trump threatened 25% tariffs on Mexico and Canada on his very first day in office, and suggested duties on China might depend on whether Beijing sells a stake in TikTok. Russ Mould of AJ Bell told Reuters equity markets are hoping that's just a bargaining position - and trade partners will be able to strike a deal with Trump.

During his first term, Trump's tariffs caused U.S. firms to flee China. Now comes Round 2, which will create new winners and losers.

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.