It's increasingly likely U.S. President Donald Trump will try to slap the European Union with tariffs. European leaders say they are ready to hit back, but the threat of a U.S.-EU trade war is shaking transatlantic relations.

European leaders warned on Monday that U.S. President Donald Trump's threat to expand tariffs to the EU risked setting off a trade war that would cause economic harm on both sides of the Atlantic.

The Telegraph reports that Donald Trump is considering introducing a 10% tariff on goods from the European Union. The newspaper assesses that such a move would escalate the global trade war that began on Saturday when the new US President imposed broad tariffs on goods imported from Mexico,