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EU warns it will retaliate if Trump starts a trade war

Trump
Photo: Nicholas Kamm / AFP via Getty Images

The European Union said Monday that it is prepared to “react swiftly and appropriately” if President Trump takes retaliatory measures on what he deems "very unfair" trade policies in the EU, reports AP.

Why it matters: The EU's warning highlights the stark difference between Trump's approach to trade and his predecessor's. Under Barack Obama, the U.S. and EU worked to create "a massive free trade zone" — an effort that crumbled once Trump began promoting trade deals in line with his America First agenda.