Trump-Juncker summit: EU threatens tariffs on $20BN of US goods in trade war WARNING

But both sides were stocking the fire before the crunch talks with the EU threatening to introduce tariffs on $20billion worth of US goods if Washington imposes new levies on car imports.

Speaking to Swedish daily Dagens Nyheter this morning, EU trade commissioner Cecilia Malmstrom outlined the threat and added: “We hope that it doesn’t come to that and that we can a solution.

“If not, the EU Commission is preparing a rather long list of many of American goods. It would be around $20 billion.”

The US and European Commission Presidents will discuss the implementation of 20 percent tariffs on EU steel and aluminium last month and Mr Trump’s threats to expand those measures to European cars.

It was a move that has left leaders throughout the bloc furious, with the European Union threatening to retaliate with heavy tariffs of its own on the US.

Relations between the the two sides have reached breaking point over recent weeks, with the meeting coming less than two weeks after Mr Trump called the EU a “foe” after complaining about higher duties applied by the EU on car imports.

The US President, who has accused the EU of unfair trade practices, has shown little interest in backing down over his trade policies, and appeared to make yet another jibe at the meeting with Mr Juncker and the EU’s intentions for it.

He tweeted on Tuesday: “Tariffs are the greatest! Either a country which has treated the United States unfairly on trade negotiates a fair deal, or it gets hit with tariffs.

“It’s as simple as that – and everybody’s talking! Remember, we are the “piggy bank” that’s being robbed. All will be great!”

Later in the day, Donald Trump continued: “The European Union is coming to Washington tomorrow to negotiate a deal on trade.

“I have an idea for them. Both the US and the EU drop all tariffs, barriers and subsidies! That would finally be called Free Market and Fair Trade! Hope they do it, we are ready — but they won’t!“

Last week, Ms Malmstrom, who will accompany the EC President to today’s meeting, said that the EU was preparing a list of US products to hit if it continued its threats to impose further tariffs.

The Commission added Jean-Claude Juncker will not arrive in Washington with a specific offer in contrast to White House economic adviser Larry Kudlow, who said he expected the EU to arrive with a “significant” trade offer.

But according to Politico, Mr Juncker will still come prepared with two proposals to discuss in exchange for a commitment to lift the steel and alum indium tariffs, while also expecting Europe from any future car tariffs.

According to a senior European official, the first would be for the EU, US, Japan, South Korea and other nations that are significant manufacturers of cars and parts for them to negotiate a “plurilateral” deal aimed at reducing tariffs on these products to zero.

The other proposal would be for Mr Juncker to negotiate a limited free trade agreement between the US and EU that focuses solely on industrial tariffs, whereby both parties could eliminate tariffs on each other’s car exports, but wouldn’t be obliged to provide duty-free treatment for other countries.

Speaking ahead of the crunch meeting, German Foreign Minister Heiko Maas warned that Europe would not bow to trade threats from the US.

He told German public television: “It is good that Jean-Claude Juncker will be in Washington tomorrow to talk and to seek a solution but we are not heading to negotiations with a pistol at our chest. I don’t think threats bring us closer to a solution.

“We in Europe must stick together. I hope that we succeed in resolving this via consensus but we will not be threatened and climb down so easily.”