Last-minute phone calls pull the North American neighbours back from the brink of a trade war, but the US is still targeting Chinese imports.

The president’s threats to slap duties on goods imported from the European Union are part of a pattern of directing the harshest penalties at the United States’ closest allies.

European Union leaders are grappling with how to respond to the United States as it appears determined to start a trade war or even seize part of their territory.