German Chancellor, Angela Merkel, hinted at a new front in the trade row with the United States on Friday, warning that Europe's strategic interests rode on the future of Europe's car industry. Merkel also hinted at competition probes for a number of U.S. internet giants.

Just as President Donald Trump had given national security as a reason for threatening punitive tariffs on German cars, Chancellor, Angela Merkel, said:  "We should think about the strategic significance of the auto industry for the European Union so we can prepare an exchange with the U.S."

U.S. president Donald Trump has repeatedly criticized Europe, and Germany in particular, for running large trade surpluses over the U.S., promising to put an end to what he saw as the continent free-riding on U.S. prosperity.

Speaking at an event to mark 70 years of Germany's "social market" economic model, Merkel  said the market dominance of giant U.S. internet platforms also posed a challenge to Europe's social model.