President Donald Trump‘s tough stance on international trade has the European Union replying that it would retaliate against the sanctions.

The contentious comments arose after Trump declared intentions to limit steel imports to protect domestic steel companies.

EU Commission President Jean-Claude Juncker responded by saying, “Our mood is increasingly combative” and says the EU will react with countermeasures by imposing limits on bourbon, a major export from Senate Majority Leader Mitch McConnell‘s state of Kentucky.

Although sanctions have yet to be officially implemented, analysts say a potential trade war with Europe would be detrimental to the economy.

“It’s been a while since we’ve had a good multilateral trade agreement or even a major regional trade agreement,” Carla Hills, a former trade representative under President George H.W. Bush, told CNBC’s “Closing Bell” on Friday. “We have indicated that we’re not interested in them, and that really hurts our nation’s economy.”

Hills specifically referenced the free-trade deal between Japan and Europe, which would hurt American industries.

“We have pulled out of the Trans-Pacific Partnership, and now we see Japan making a deal with Europe, which will have an adverse effect upon a number of our industries as Japan lowers its tariffs to our competitors,” Hills said. “We are in effect taxed when we have the opportunity to sell.”

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