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Ryanair’s Michael O’Leary has said Europe needs a more “belligerent” approach to Donald Trump and to stop “trying to pander to him”.

He said he does not know what effect an EU-US trade war would have on his low-budget airline but said he did not think any trade dispute would last long.

“I think it is time for Europe to stand up to the US,” he told reporters in Dublin.

“If Trump threatens Europe with tariffs, Europe should respond in like measure, and Trump will chicken out, he generally does.

“Europe is a big, wealthy economy, the second largest trading bloc in the world after the US economy, and Europe needs to get its act together.

“I don’t think a trade war would last very long, given the amount of American businesses that are based here in Europe, and given the amount of Europe imports from America and vice versa. But we have to have a more belligerent foreign policy towards certainly the Trump administration, and we would hope that eventually common sense will prevail.”

He said he hoped there would not be a trade war, but if there was, that aircrafts and engines will be exempt.

“I think if you look at Trump, he is, at the end of the day, is interested in doing business.

“He certainly has mid-term elections coming in November. He certainly wants the US economy to be doing well.

“I don’t think Trump, eight months out from mid-term elections, can afford to have a trade war with Europe.”

He said one of the things that Mr Trump will be focused on before the mid-terms in November will be driving down oil prices and interest rates in North America, which could result in lower fares.

“Certainly every attempt there with the removal of the Venezuelan president to boost oil supply and maybe drive down gas prices.

“But that’s me merely speculating if oil prices fall or continue to fall, and there is generally an expectation of a supply glut this year, then I think a lot of those oil price savings will be passed on in the form of lower fares.”

He said that Mr Trump was right on the need to increase spending on Nato and on his opposition to “environmental taxation”, but was wrong on tariffs, Ukraine and Greenland.

“But where he’s wrong Europe should stand up as a strong trading bloc and tell him he’s wrong, and stop trying to pander to him and invite him to dinner.”