After three years spent trying to deter Russia from destroying Ukraine, European Union leaders grappled on Monday with how to respond to a major ally who appears determined to start a trade war or even seize part of their territory.

Donald Trump is considering plans to impose a 10 per cent tariff on the EU, The Telegraph understands. The move would pour fuel on a blooming global trade war, which began at the weekend when the US president slapped sweeping levies on goods imported from Mexico, Canada and China.

EU leaders were relieved when Donald Trump failed to mention tariffs on European goods during his inauguration speech on 20 January.

US President Donald Trump said he will “definitely” place new tariffs on the European Union, reiterating complaints about the US trade deficit with the bloc and what he sees as insufficient EU imports of American cars and agricultural products.

European Union leaders are grappling with possible responses to a major ally the United States which appears determined to start a trade war or perhaps even seize part of their territory

European leaders are asserting that President Donald Trump’s proposed tariffs against the European Union will force member states to fight back until the United States respects their economic power. White House officials announced earlier this week that a slew of heavy tariffs would be implemented against the EU,