In the summer of 2018, when former President Donald Trump launched a trade war with Beijing, the Chinese economy was gaining on the United States, and popular opinion suggested it could soon become the world’s largest.

The European Union is prepared to react to any renewed trade tensions with the United States that may emerge under President-elect Donald Trump's second administration, the EU's ambassador to the U.S.

European countries could be among those hardest hit if Trump follows through on tariffs. The European Union says it wants to negotiate but is prepared to retaliate.

The European Union should seek constructive engagement on trade with the incoming Trump administration, but be ready to hit back in a coordinated way at the United States if it imposes new tariffs on the 27-nation bloc,

Some European Union member states want the bloc to engage more urgently with Donald Trump’s transition team as they hope to stave off disruption and worsening tensions with its largest trading partner.

The layman’s narrative of the 1930s is that America’s Smoot-Hawley tariffs set off a beggar-thy-neighbour spiral and caused the Great Depression. It is not true. This free-trade ideology lies behind much of the confusion over what may happen if Donald Trump goes ahead with his 10pc or 20pc tariffs against everybody and 60pc tariffs against China.