US President Donald Trump and German Chancellor Angela Merkel have agreed on the need to improve US trade relations with the European Union following the recent escalation in disputes.

Trump and Merkel in a phone call on Monday "strongly supported ongoing discussions between Washington and Brussels to remove barriers to a deeper trading relationship", White House Press Secretary Sarah Sanders said in a statement. The US-EU relations have faltered following Trump's decision to end tax exemptions on steel and aluminium products from its European partners and the subsequent response from Brussels, Efe news reported.