German Chancellor Olaf Scholz said that Europe has the capacity to react to new US tariffs if President Donald Trump follows through on his recent threats, joining a chorus of European leaders pledging to retaliate if necessary.

Since taking office last month, US President Donald Trump has threatened to impose tariffs on EU imports and refused to rule out military force to take control of Greenland, an autonomous territory of NATO ally Denmark.

The European Union is preparing for a transatlantic trade fight, but US President Donald Trump’s decision to delay broad tariffs on Mexico and Canada this week has bolstered confidence in the bloc that it will be able to negotiate an acceptable outcome.

U.S. President Donald Trump has hinted that the European Union could be the next target in his ongoing tariff battle. After imposing steep tariffs on China, Mexico, and Canada, Trump now claims the EU has been unfairly benefiting at the expense of the U.

Donald Trump’s tariff threats dominated European Union meeting EU leaders' meeting: Bloc warns of tariff impact on Europe Donald Trump's threats of tariffs have dominated a European Union meeting. European Commission president Ursula von der Leyen says while having a working relationship with the US is vital - Europe won't passively accept economic penalties from Trump's administration.

Donald Trump threatened tariffs on Europe, European Union leaders are seeking unity on defence spending and a response to economic blackmail. In Brussels, Polish Prime Minister Donald Tusk stated that EU state leaders and the EU itself "must do everything to avoid this unnecessary and stupid trade war.