Trump: European Union is 'almost as bad as China, just smaller'

Fears of trade war

US President Donald Trump has hinted at a possible trade war with the European Union after referring to the group as "almost as bad as China, just smaller" in an interview.

In an interview with Bloomberg News, Trump went back on his handshake agreement with president of the European Commission Jean-Claude Juncker. The two parties met in July and the handshake was intended to spare the EU from Trump's trade war threats after Trump initiated tariffs on steel and aluminium imported from the EU. However, speaking to Bloomberg, Trump described the EU as "almost as bad as China, just smaller". He has also rejected demands from the EU to eliminate tariffs on transatlantic auto imports, saying the EU's offer was "not good enough".  Investors eye safe haven...