Donald Trump has claimed America will not be hurt in a trade war over his steel tariff as he promised a "loving" approach to the issue.

The US president said that other countries would suffer more than America if they counter his 25 per cent steel tariff by imposing their own punitive measures.

Mr Trump repeated a threat to tax European cars if the EU retaliated and said that Brussels had overseen a “very, very unfair trade situation” with America.

The comments were delivered as Stefan Löfven, the Swedish prime minster, stood by Mr Trump’s side just moments after privately urging him to change course.

Appearing at a joint press conference in the White House, Mr Trump was asked how he would avoid his steel tariff “escalating in a trade war”.

Mr Trump responded: “Well, we’ll have to see. When we’re behind on every single country, trade wars aren’t so bad. You understand what I mean by that?