Donald Trump has dashed EU hopes of a quick trade deal, describing the bloc as "nastier than China" while announcing a breakthrough with Beijing.

The President's comments came as he revealed details of a major climbdown in his tariff war with China.

Trump told reporters: "[The EU] treated us very unfairly. They sell us 13million cars. We sell them none.

"They sell us their agricultural products. We sell them virtually none. They don't take our products. That gives us all the cards."

Trump said the EU 'will come down a lot'

Trump's comments come after Thursday's more conciliatory tone when he called European Commission President Ursula von der Leyen "fantastic" and expressed hope for a meeting.

The President added: "The European Union is in many ways nastier than China, and we've just started with them. They'll come down a lot. You watch."

Pressure is mounting on the EU to reach an agreement with Trump, particularly as Japan and Korea may secure their tariff deals before Brussels.

Europe's business community is increasingly concerned about a potential trade war when the 90-day tariff pause ends in early July.

Fredrik Persson, president of BusinessEurope, has called for both sides to eliminate existing tariffs and avoid imposing new ones.

Persson said: "We should preserve tariff-free arrangements that support our companies in key sectors such as aerospace, spirits, and medical devices."

Before Trump's return to the White House, the average US tariff rate on imports from the EU was just under 1.5 per cent, while the EU's average tariff on US imports was 1.35 per cent.

This relatively balanced situation changed dramatically with Trump's "liberation day" announcement on April 2. Trump's April announcement imposed a 20 per cent reciprocal tariff on the EU, plus a 25 per cent tariff on vehicles and car parts, though he later suspended these for 90 days.

Trump is hopeful for a meeting with Von Der Leyen, but the President of the European Commission will only meet if there is a 'concrete package to discuss'

If no deal is reached by early July, the tariffs would hit €379billion (£319billion) of EU exports to the US.

The Bruegel Institute estimates that a no-deal outcome could wipe 0.7 percentage points off US GDP and 0.3 points off the EU's economy.

The EU is seeking a "zero for zero" tariff package covering industrial goods, including cars and chemicals.

If rebuffed, Brussels could retaliate against American goods from aircraft to seafood.