The trade threats could reduce exports to the United States and dampen investment in Europe, dealing a blow to growth at a time when the continent is already facing a lackluster economy.

The European Commission said on Friday it would react "firmly and immediately" against tariff increases resulting from U.S. President Donald Trump's proposed "reciprocal" trade policy, which it labelled unjustified and a step in the wrong direction.

The European Union’s executive branch has vowed to “take firm and immediate action” against U.S. President Donald Trump’s imposition of tariffs on steel and aluminum.

The EU has vowed to respond "firmly and immediately" to trade barriers after US President Donald Trump unveiled tariffs that could hit both allies and competitors.

The European Union can negotiate on reciprocal tariffs with the United States but will not give up its right to regulate in areas such as taxation and digital platforms, the chair of the European Parliament's trade committee said on Friday.

The European Union is preparing for a turbulent period in transatlantic relations as the Trump administration's trade policies and tech regulations challenge long-standing agreements and potentially destabilize Europe's economy and security.

European Commission President Ursula von der Leyen said during the Munich security conference Friday the European Union will respond if the United States imposes reciprocal tariffs.