The European Commission said on Friday it would react "firmly and immediately" against tariff increases resulting from U.S. President Donald Trump's proposed "reciprocal" trade policy, which it labelled unjustified and a step in the wrong direction.

The trade threats could reduce exports to the United States and dampen investment in Europe, dealing a blow to growth at a time when the continent is already facing a lackluster economy.

The commission’s response comes after Trump instructed staff to create tariffs on countries he sees as having unfair trade policies with the U.S.