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The European Union gave President Donald Trump a fresh warning about any U.S. curbs on imports from Europe by pledging rapid retaliation, highlighting the persistent risk of a trans-Atlantic trade war.

The U.S. trade deficit in November reached the highest level in almost six years as an increase in imports exceeded a gain in shipments overseas, Commerce Department data showed Jan. 5.

Factories across the globe warned they are finding it increasingly hard to keep up with demand, potentially forcing them to raise prices as the world economy looks set to enjoy its strongest year since 2011.

The push to salvage a Pacific Rim trade pact will come to a head this week as nations diverge on whether it should be preserved, abandoned or renegotiated from scratch after President Donald Trump pulled the U.S. out of the deal.

U.S. negotiators on Oct. 12 presented a proposal for a so-called “sunset clause” that would see the North American Free Trade Agreement expire after five years unless the parties can agree to extend it, according to two people familiar with the talks.

Improving global demand and a weaker dollar are helping boost U.S. exports, with the trade deficit narrowing to an 11-month low in August, Commerce Department data showed Oct. 5.

Representatives of the United States, Mexico and Canada declared “progress” but unveiled no breakthroughs at the conclusion Sept. 5 of a second round of talks to revise the North American Free Trade Agreement

The U.S. is heading into the first round of talks on an updated North American Free Trade Agreement with an aggressive timeline for completing talks with Mexico and Canada, a Trump administration official said.

America’s trade deficit narrowed to an eight-month low in June, helped by the biggest outflow of goods and services since the end of 2014, a positive signal for the economy entering the third quarter, Commerce Department data showed Aug. 4.

Donald Trump’s election as U.S. president sparked warnings of damaging trade wars and an end to globalization as we know it. So far, those predictions haven’t played out.