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.

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.

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.

US President Donald Trump reiterated a call for the European Union to buy more American oil and gas if the bloc wants to avoid tariffs.

The return of U.S. President Donald Trump to the White House is a wake-up call for European Union countries to fix their economies and become more competitive, the EU's senior financial officials said on Monday as Trump was sworn in for a second term.

The EU's top diplomat Kaja Kallas said Wednesday that the bloc must heed US President Donald Trump's demand to spend more on defence, as she issued a stark warning over

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.

The European Union has announced a proportional response to any tariffs imposed by U.S. President Donald Trump. EU Commissioner for the Economy Valdis Dombrovskis emphasizes that the Union is ready to defend its economic interests.