President Donald Trump said Saturday value-added taxes, taxes levied to goods during each stage of production which are widely used in Europe, will be considered tariffs as part of the reciprocal tariff plan he argues would level the playing field in global trade—though economists project they would increase inflation this year.

The European Union is preparing for a turbulent period in transatlantic relations as the Trump administration's trade policies and tech regulations challenge long-standing agreements and potentially destabilize Europe's economy and security.