President Donald Trump relaunched a trade war against Europe on Wednesday, threatening to hit the EU with damaging auto tariffs if Europeans fail to agree a long-delayed trade deal. “The European Union is tougher to deal with than anybody. They’ve taken advantage of our country for many years.” Trump told Fox Business News on the sidelines of the World Economic Forum in Davos.“Ultimately, it will be very easy, because if we can’t make a deal, we’ll have to put 25% tariffs on their cars,” he said. Trump said his attention will turn to Europe, after he sealed a trade truce with China after several years of a trade war that destabilized the world economy.“I wanted to wait till I finished China, to be honest with you. I always like to be very transparent. I wanted to wait till I finished China. I didn’t want to go with China and Europe at the same time.” Trump’s comments followed a warning by Treasury Secretary Steven Mnuchin that Washington would deliver on long-threatened auto tariffs if Europeans go through with a digital tax that targets major U.S. tech firms.“If people want to arbitrarily put taxes on our digital companies we will consider putting taxes arbitrarily on car companies,” Mnuchin told a panel at the four-day talk-fest.Notably, EU-U.S. trade relations deteriorated soon after Trump came to power three years ago and declared a war against the trade deficit with Europe.The US and EU agreed to pursue a trade deal in July 2017 as a tentative truce, but negotiations have stalled over farming. Trump offered an olive branch to the Europeans meanwhile, giving his backing to a reform of the World Trade Organization, the arbitrator of global commerce that he says is unfair on Washington. “I’ve had a dispute running with them for quite a while because our country hasn’t been treated fairly,” Trump said, speaking alongside WTO chief Roberto Azevedo.