European Union leaders are grappling with how to respond to the United States as it appears determined to start a trade war or even seize part of their territory.

Donald Trump described the UK as "way out of line" but hinted that it could be spared tariffs as he warned he would impose them on the European Union “soon.” The US president has already announced he will impose 25 per cent trade taxes on goods coming from America’s nearest neighbours and largest trade partners – Canada and Mexico – as well as a 10 per cent levy on Chinese goods.