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.

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.

America's closest neighbors and allies are racing to respond, or bracing for impact as Trump orders big tariffs on imports from Canada, Mexico and China.

European Union leaders gather on Monday to discuss how to bolster the continent's defences against Russia and how to handle U.S. President Donald Trump after his decision to impose tariffs on goods from Canada,

The European Union has said it will “respond firmly” if the US imposes tariffs on the bloc in the latest sign of discontent with President Donald Trump’s trade tactics that are reverberating globally.

As Canada and Mexico scrambled to ward off tariffs from the U.S., members of the EU are bracing for President Donald Trump to impose tariffs there as well.