A graph $G$ is universal for a class of graphs $\mathcal{C}$, if, up to isomorphism, $G$ contains every graph in $\mathcal{C}$ as a subgraph. In 1978, Chung and Graham asked for the minimal number $s(n)$ of edges in a graph with $n$ vertices that is universal for all trees with $n$ vertices. The currently best bounds assert that $n\ln n-O(n)\le s(n) \le C n\ln n+O(n)$, where $C = \frac{14}{5\ln 2} \approx 4.04$. We improve the upper bound to $c n\ln n + O(n)$, where $c = \frac{19}{6\ln 3} \approx 2.88$. In the proof we develop a strategy that, broadly speaking, is based on separating trees into three parts, thus enabling us to embed them in a structure that originates from ternary trees. Our method also applies to graphs with a bound on their treewidth. Let $s_w(n)$ be the minimum number of edges in a $n$-vertex graph that is universal for graphs with treewidth $w$. By performing a blow-up to our universal structure for trees we establish that $nw \ln(n/w) -O(nw) \leq s_w(n) \leq \frac{19}{6\ln3} n (w+1) \ln(n/w) + O(nw)$.