The EU has condemned US plans for tough tariffs on steel and aluminium imports, saying they jeopardise European jobs.
EU trade commissioner Cecilia Malmstrom set out plans to retaliate against the proposed US tariffs.
These include higher import duties on bourbon, peanut butter, cranberries, orange juice, steel, and industrial products, she said.
On Tuesday, Donald Trump’s top economic advisor Gary Cohn, who opposes tariffs, resigned.
That was after Mr Trump said EU trade rules make it “impossible” for US firms to do business with the bloc.
Ms Malmstrom said the US justification for the proposed 25% tariff on steel imports and 10% on aluminium imports was that US national security is threatened.
“We have serious doubt about that justification. We cannot see how the European Union, friends, and allies in Nato, can be a threat to national security in the US,” she said.
“We find that assumption deeply unjust.”