President Trump has turned up the heat on Europe, declaring that tariffs on the European Union are “definitely” on the way and could come “pretty soon.” This comes after he ramped up tensions with Mexico and Canada by imposing hefty new tariffs on their goods.

European leaders are already bracing for impact. For months, a special team within the European Commission has been quietly preparing for this exact scenario, nicknaming themselves the “Trump task force.” Now, with the U.S. president doubling down on his threats, officials are on high alert.

Denmark’s Prime Minister Mette Frederiksen summed up the mood, saying she’s against fighting allies but acknowledged that Europe will need a strong, united response if tariffs are imposed. Meanwhile, the EU’s top diplomat, Kaja Kallas, warned that while the U.S. remains Europe’s most important trading partner, a trade war would be a lose-lose situation for both sides—and could end up benefiting China.

European trade ministers are set to meet in Warsaw to discuss how to handle this looming crisis. The big question is how the EU will respond if Trump follows through on his threats. One thing’s for sure: the stakes are high, and the global economy could feel the ripple effects.

With tensions rising, all eyes are on what happens next—and whether the world is headed for another trade showdown.