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Donald Trump’s administration is at breaking point with the EU and is ready to sever ties with the bloc over financial market regulation amid ongoing tensions with Germany. Previous meetings between the US President and German Chancellor Angela Merkel have been overshadowed by tension after Mr Trump refused to shake his German counterpart's hand. According to German weekly magazine Die Spiegel, the US President is preparing to throw his weight around and is ready to punish the EU and its economic powerhouse Germany by issuing tariffs on dozens of product if the bloc refuses to open its market to US hormone-fed meat.

GETTY The US has signalled it could discontinue multilateral cooperation on financial market regulation

The crisis comes ahead of the G20 summit with Mrs Merkel sending top economic adviser Lars-Hendrik Roeller and her team to the White House for talks today. G20 countries began coordinating on financial regulation and tax matters after the global financial crisis of 2008/9. But Mr Trump who has repeatedly called to put “America first” is ready to go it alone. Germany’s efforts amount to a last-ditch bid to overcome differences on trade and climate change ahead of the G20 summit in Hamburg, which will be held from July 7-8.

These will not be easy talks. The differences are obvious and it would be wrong to pretend they aren't there. I simply won't do this German Chancellor Angela Merkel

In a speech to the Bundestag lower house of parliament on Thursday, Mrs Merkel acknowledged the enormity of the challenge ahead. She said: "These will not be easy talks. The differences are obvious and it would be wrong to pretend they aren't there. I simply won't do this." Der Spiegel said if the US withdraws from further international agreements the G20 summit will fail. The magazine adds the US Government is also threatening to cease co-operation with G20 in the fight against tax havens and tax dumping.

GETTY Angela Merkel acknowledged that there were stubborn differences with the Trump administration

GETTY G20 countries began coordinating on financial regulation and tax matters after the financial crisis

President Trump announced earlier this month that he would pull the United States out of a landmark international agreement to fight climate change. His administration is also threatening Germany and China with punitive trade measures on steel ahead of the G20 summit. Germany’s minister of economic affairs Brigitte Zypries warned the EU will hit back. She told Die Spiegel: “The EU will react appropriately should the US introduce trade restrictions against German or European steel companies.” Washington even appears to be backtracking on language pledging to "fight all forms of protectionism" that Trump approved at the G7, say German officials, who list migration as another source of contention. Mr Trump will use the premise of a national security review of the US steel industry to demand action by G20 leaders to reduce excess capacity and other distortions in the global steel market.

Merkel meets Trump at the White House Fri, March 17, 2017 U.S. President Donald Trump has welcomed German Chancellor Angela Merkel to the White House in Washington DC Play slideshow REUTERS 1 of 18 U.S. President Trump and German Chancellor Merkel hold a joint news conference in Washington