The EU remains hopeful it will strike a deal to avoid steep levies Trump has threatened on its exports to the US.

The European Union said it was working on sealing a trade deal with the United States by the end of the month, while U.S. President Donald Trump promised that he would deliver further tariff notices on unnamed countries on Wednesday.

EU negotiators are closing in on a trade deal with Donald Trump that would cement higher tariffs than those granted to the UK, a Brexit dividend that has rattled some European capitals. Brussels is ready to sign a temporary “framework” agreement that sets the US president’s “reciprocal” tariffs at 10 per cent while talks continue,

The European Union has summoned the Chinese ambassador following an incident in which China's military allegedly targeted a German aircraft with a laser during an EU security mission in the Red Sea. China has denied the accusation.

Germany summoned the Chinese ambassador to the foreign ministry on Tuesday after saying China's military had laser-targeted a German aircraft taking part in an EU operation in the Red Sea, an account Beijing denied.

Germany said its aircraft was in the middle of a routine flight in support of the European Union's counter-Houthi mission.