U.S. President Donald Trump has promised to address a longstanding trade deficit with the European Union, saying he will reverse that by imposing tariffs or making the EU buy more U.S. oil and gas.

EU, German and Chinese leaders took turns defending global cooperation in Davos on Tuesday as the spectre of new trade wars looms following Donald Trump's return to the White House. It was probably Scholz's last speech in Davos as chancellor ahead of German elections next month.

Donald Trump promised to impose tariffs and tax foreign countries like those in Europe, but he did not mention any related trade measures after his inauguration. Several EU leaders moved to offer their best wishes for Trump’s presidential win but carefully avoided mentioning his first policy announcements.

The return of U.S. President Donald Trump to the White House is a wake-up call for European Union countries to fix their economies and become more competitive, the EU's senior financial officials said on Monday as Trump was sworn in for a second term.

This president's second term is set to reshape global economic policy, with trade tariffs, tax cuts, and a stronger dollar impacting inflation and interest rates. While the Fed may hold or tighten rates,