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.

While EU leaders were trying to remind the Trump administration about the economic value of EU-US trade, they now widely agree that the correct answer to tariffs should be to retaliate with the same measures if necessary.

EU leaders meeting in Brussels Monday warned there would be no winners in a trade war with the United States, insisting they would hit back if President Donald Trump imposes tariffs. Trump has not hidden his enmity for the EU,

"There are no winners in trade wars. If … the U.S. starts a trade war, then the one laughing on the side is China," said the EU's foreign policy chief.

European leaders warned on Monday that U.S. President Donald Trump's threat to expand tariffs to the EU risked igniting a trade war that would harm consumers on both sides of the Atlantic. European Union foreign policy chief Kaja Kallas said if the U.