Transatlantic trade tensions have escalated following U.S. President Donald Trump’s announcement of a 25 percent tariff on European imports, with European countries warning that Europe will react “firmly and immediately” against unjustified barriers.

The European Union has been a “boon” for the United States, it fired back Wednesday at US President Donald Trump, after he said the bloc was formed “to screw the United States”. “The European Union is the world’s largest free market.

The European Union is insisting that the 27-nation bloc is not out to undermine the United States as U.S. President Donald Trump put it.

President Trump accuses the European Union of cheating the United States, sparking tensions and threats of new tariffs.

In a recent report, the European Central Bank (ECB) highlighted trade tariffs as one of the European economy's major challenges. This assessment came just days after the U.S. administration decided to slap a 25 percent tariff on steel and aluminum imports, along with additional levies on cars, semiconductors and pharmaceuticals.

Hungary's minister of foreign affairs and trade pointed out.

Romania's interim president Ilie Bolojan will travel to London on Sunday, March 2, for a summit of European leaders on the topic of European defense, also attended by Ukrainian president Volodymyr Zelenskiy,