The schism in global trade relations was laid bare at a meeting of G20 finance ministers and central bank governors in Argentina over the weekend, who warned that increasing trade tensions risk undermining the global economy.
Bruno Le Maire, the French finance minister, said the EU would not negotiate trade with the US “with a gun to our head”, referring to the more aggressive trade stance taken by the Trump administration, including imposing tariffs on European steel and aluminium.
Steven Mnuchin, the US Treasury secretary, made clear his willingness to sign free-trade deals, while insisting that European retaliatory tariffs on specific products such as Bourbon whiskey and Harley-Davidson motorcycles were not hurting the US economy.