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German Chancellor Angela Merkel on Wednesday warned against the looming specter of a trade war with the United States amid threats by President Trump to impose heavy tariffs on auto imports from Europe.

Merkel told German lawmakers that the ongoing dispute between the U.S. and Europe over tariffs already has the hallmarks of a “trade conflict” that could soon worsen into a full-blown trade war if tensions aren’t defused, she said.

The article goes on to state the following:

“We now have tariffs on aluminum and steel and we have a discussion that is far more serious,” Merkel said, pointing to Trump’s threats to slap tariffs on European auto exports to the U.S.

“This has the character of a trade conflict,” she continued. “I don’t want to use any other word for now. It’s worth every effort to try to defuse this conflict, so it doesn’t turn into a war. But this obviously takes two.”

Trump moved in May to impose steep tariffs on steel and aluminum imports from the European Union, Canada and Mexico, infuriating many key U.S. allies who decried the duties as a dangerous form of economic protectionism.

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