The European Union is debating whether to drop a sensitive trade investigation against China over alleged coercive activity targeting Lithuania, a prospect that’s frustrated officials in Washington, where the incoming Trump team sees it as capitulation to Beijing.

Trump, who will be inaugurated next week, has threatened the EU with tariffs and his team has criticized the bloc for being weak on China. The manner in which the EU handles the dispute will present an early test of how the world approaches trade under the new administration in Washington and the resilience of the transatlantic relationship.

Donald Trump's Treasury secretary pick, Scott Bessent, told lawmakers at his Senate hearing he backs using tariffs against what he called 'unfair trade practices.' During Trump's first term, the EU and China ducked some duties by buying U.

U.S. President-elect Donald Trump and Chinese President Xi Jinping discussed issues including TikTok, trade and Taiwan in a phone call on Friday, just days before Trump takes office again promising tariffs that could ratchet up tensions between the world's two biggest economies.

President-elect Donald Trump said he spoke on the phone with Chinese President Xi Jinping about TikTok, fentanyl, trade and more.

President-elect Donald Trump said on Friday he spoke to China's Xi Jinping about TikTok and other issues as he prepares to take office in a matter of days.