European leaders expressed concerns on Monday regarding U.S. President Donald Trump‘s indication of potentially extending tariffs to the European Union, warning that such actions could ignite a trade war detrimental to both sides of the Atlantic. Kaja Kallas, the European Union’s foreign policy chief, remarked that a trade conflict between the U.S. and Europe would ultimately benefit China. “Our economies are deeply interconnected. We rely on America, and America relies on us,” she stated prior to an informal meeting of EU leaders in Brussels.

Trump informed the 27 EU member states that they could be next after his recent imposition of extensive tariffs on Mexico, Canada, and China. “It will definitely happen with the European Union. I can assure you of that because they have really taken advantage of us,” Trump told reporters on Sunday, reiterating his grievances regarding the trade deficit. “They don’t import our cars or agricultural products. They take almost nothing, while we take everything from them.”

German Chancellor Olaf Scholz adopted a more measured approach, advocating for collaboration between the EU and the U.S. “As a robust economic bloc, we have the ability to shape our own future and respond to tariff measures… However, our aim should be to foster cooperation,” he emphasized.

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Germany’s conservative opposition leader Friedrich Merz cautioned on Sunday that the imposition of tariffs could have unintended consequences.

Trump is beginning to understand that the tariffs he is implementing will not be borne by the importers into the United States. Rather, it will be American consumers who will ultimately shoulder these costs, stated Merz, who is expected to assume leadership in Germany following the upcoming election.

Francois Villeroy de Galhau, the governor of the French central bank, characterized Trump’s tariffs as “very brutal,” emphasizing their particularly adverse effects on the automotive industry.

“This type of protectionist trade conflict results in losses for everyone involved,” he remarked during an interview with France Info radio.

On Monday, shares of European automotive manufacturers declined amid worries regarding the repercussions of the tariffs.

In his criticisms regarding the trade balance with the EU, Trump has concentrated solely on goods trade. The EU has consistently exported more goods to the United States than it has imported, resulting in a U.S. goods trade deficit of 155.8 billion euros ($159.5 billion) in 2023, as reported by Eurostat. Conversely, in the services sector, the U.S. enjoyed a surplus of exports over imports with the European Union, amounting to 104 billion euros in 2023, according to Eurostat.