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.

After three years spent trying to deter Russia from destroying Ukraine, European Union leaders grappled on Monday with how to respond to a major ally who appears determined to start a trade war or even seize part of their territory.

The president’s threats to slap duties on goods imported from the European Union are part of a pattern of directing the harshest penalties at the United States’ closest allies.