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"The European Union, wonderful countries who treat the US very badly on trade, are complaining about the tariffs on Steel & Aluminum", Trump tweeted.

Trump later tweeted: "The European Union, wonderful countries who treat the USA very badly on trade, are complaining about the tariffs on Steel & Aluminum".

She said discussions would continue next week.

The US tariffs are set to go into effect in less than two weeks.

Europe's trade chief Cecilia Malmstrom described talks with Mr Lighthizer as "frank" and said they had not brought clarity on the exemption procedure. "Big Deficit. If not, we Tax Cars etc. FAIR!"

However, US President Donald Trump, who justified the measures by saying they would protect US national security interests, said "real friends" of the US might be exempt.

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BRUSSELS-The European Union and Japan pressed U.S. President Donald Trump's trade envoy Saturday to exempt them, as longtime U.S. allies, from upcoming steel tariffs that have sparked fears of a new trade war.

"As a close security and trade partner of the United States, the European Union must be excluded from the announced measures".

Brussels immediately asked for an exemption and threatened countermeasures on US-made goods if rejected.

In announcing the measures, European Commission head Jean-Claude Juncker taunted Trump, saying the EU could match "stupid with stupid".

In Brussels, the capital of the European Union, Saturday's meetings appeared inconclusive. Trump tweeted that he spoke with Japanese Prime Minister Shinzo Abe, saying they are "discussing opening up Japan to much better trade with the U.S. now have a massive $100 Billion Trade Deficit". European Commission Vice President Jyrki Katainen said it would be "a meeting, not THE meeting".

The EU has warned that it stands ready to slap "rebalancing" tariffs on about 2.8 billion euros ($3.4 billion) worth of US steel, agricultural and other products, like peanut butter, cranberries and orange juice.

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"This is not a trade negotiation", he said.

Turnbull added Australia had "the closest possible military and security alliance with the United States and it gets closer all of the time".

Complicating matters, Trump indicated that the sparing of Australia was linked to an unspecified "security agreement" outside of trade policy.

This shed some light on the tycoon's specific barbs against Germany - the biggest economy in the European Union - that have finger-pointed Berlin for contributing much less than the USA towards the funding of North Atlantic Treaty Organisation.

The meetings were previously planned, but took on greater importance because of Trump's announcement of a 25 per cent tariff on steel imports and 10 per cent on aluminum imports.

Brussels is also looking at "safeguard" measures to protect its industry - restricting the bloc's imports of steel and aluminum to stop foreign supplies flooding the European market, which is allowed under World Trade Organization rules.

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