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.

Ukrainian president Volodymyr Zelenskiy warned Europe it could be sidelined by the US, Russia and China, a day after Mr Trump returned to the White House and called on the Kremlin to “make a deal” to end a war that was “destroying Russia”.

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.

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.

EU chief Ursula von der Leyen declared Tuesday that Europe was ready to negotiate with US President Donald Trump but the bloc will also seek to improve ties with China