BRUSSELS (AP) — On Thursday, the European Union (EU) strongly refuted accusations made by U.S. President Donald Trump, who claimed that the 27-member bloc aimed to undermine the United States. The EU emphasized its commitment to vigorously oppose any imposition of a 25% tariff on all EU goods.

This escalating dispute follows Trump’s inflammatory comments directed at a long-standing ally and key economic partner, exacerbating the transatlantic divide, which has already been strained by his assertions regarding the U.S.’s potential withdrawal of security assurances to European partners.

The EU’s robust response came after Trump stated to journalists that “the European Union was created to harm the United States. That’s its primary function, and it has succeeded.” Trump also promised that such actions would cease once he was in charge.

Prime Minister Donald Tusk of Poland, currently overseeing the EU’s rotating presidency, launched a counterargument.

“The EU was not established to harm anyone,” Tusk remarked in a post on X. “On the contrary, its foundation aimed to promote peace, respect among nations, and to foster free and fair trade, thereby strengthening our transatlantic ties. It’s straightforward.”

The EU issued a warning that should tariffs be introduced, it would respond with severe countermeasures targeting iconic U.S. products, such as bourbon, jeans, and motorcycles.

“The EU will respond decisively and promptly to any unjustified trade barriers,” stated Olof Gill, a spokesperson for the European Commission on trade. “We are committed to safeguarding our consumers and businesses. They expect nothing less from us.”

In remarks made late Wednesday, Trump asserted that the United States is prepared for any retaliatory measures.

“We are the sought-after market. Everyone wants what we have. They may retaliate, but it won’t be effective, because we would simply stop purchasing from them. And if that happens, we emerge victorious,” he stated.

Gill also addressed Trump’s harsh critique of the EU’s formation and growth as an economic entity. “The European Union represents the largest free market globally and has significantly benefited the United States,” he noted, asserting that the EU has “facilitated trade, reduced expenses for U.S. exporters, and harmonized standards and regulations, simplifying the export process for American businesses.”

The EU estimates that trade between the two regions amounts to around $1.5 trillion, making up approximately 30% of global trade. While Trump has voiced concerns about the trade deficit, the EU points out that although it possesses a considerable export surplus in goods, this is partially balanced by a U.S. surplus in service trade.

In 2023, the EU reported that its goods trade totaled 851 billion euros ($878 billion), resulting in a trade surplus of 156 billion euros ($161 billion). Meanwhile, service trade was valued at 688 billion euros ($710 billion), leading to a trade deficit of 104 billion euros ($107 billion) for the EU.

The sheer scale of these figures makes it essential to avert a trade war, according to EU officials.

“We should collaborate to maintain these opportunities for our citizens and businesses, rather than acting in opposition,” Gill urged. “Europe champions dialogue, openness, and reciprocity. We are eager to partner if the rules are respected.”