The US president said he was going to target the European Union and China with increased tariffs on Tuesday. China and Europe said they were ready to negotiate with Trump, warning they would 'protect' their interests.

Trump, who will be inaugurated next week, has threatened the EU with tariffs and his team has criticized the bloc for being weak on China. The manner in which the EU handles the dispute will present an early test of how the world approaches trade under the new administration in Washington and the resilience of the transatlantic relationship.