German Chancellor Olaf Scholz stated on Thursday the importance for the European Union to present a unified stance on the tariffs implemented by the United States.

“Europe’s strength lies in our unity. We have the world’s largest single market. We must harness this power,” Scholz said in a press statement.

Scholz highlighted that tariffs could lead to extensive economic damage on a global scale.

“The US fixation on tariffs risks igniting a spiral that can push countries into recession and cause widespread devastation,” he remarked, adding that this would have “grievous consequences for many people.”

Scholz insisted that the EU had “consistently advocated for negotiations over confrontations,” but if the US is not amenable to a negotiated settlement, the EU will “issue a balanced, clear, and determined response.”

He also questioned Trump’s label of ‘Liberation Day’ for the new tariffs, stating that “for the US consumers, the day will not be Liberation Day, but Inflation Day.”