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.

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

President Trump’s threats are carrying more weight after his moves against Canada, Mexico and China. Europe has been preparing for the possibility of a trade war for months.