kriti gupta breaking down the impact. trump also reiterating that he does plan to impose tariffs on the european union, citing a large trade deficit with the block. >> it will definitely happen with the european union because they have really taken advantage of us and we have a deficit. i would not say there's a timeline but it will be soon. >> let's bring in oliver crook in hamburg. how seriously is the european union taking the threat of u.s. tariffs and what options could they reach for? >> i think they are taking it seriously. our member speaking to the prime minister of denmark a few months before the election and she kind of shrugged greenland off. it's clear this will be a major feature of the trump administration and european leaders have been resident that have been reticent but they have a list of retaliatory measures they are ready told fire off if they get these measures from donald trump coming in the next days or weeks. the question is what it -- what are his demands and he has made some indication of that b

. >> i am kriti gupta. >> i am anna edwards. join us for the opening trade at 7:00 a.m.e in london. >> only on bloomberg. context changes eg. >> we have breaking news here. president trump signed an executive order to create a sovereign wealth fund. he made the comments to reporters at the white house and of course, we will keep you posted on this development. he is of course going to be speaking shortly and when those comments cross, we will bring them to you. in the meantime, president is making tariffs a central theme of his first few days in office. he says trade deficits are his main motivation for the levees but the u.s. lowered trade deficits with both canada and mexico compared to a lot of countries and it's one of the many reasons these tariff threats don't necessarily make a lot of sense. so let's bring in bloomberg opinion columnists john authers and we will get to that and that chart in a moment but just your initial reaction to this idea that the u.s. might have a sovereign wealth fund under this new executive order? what purpose might that serve? >> my init