The European Union will retaliate if US President Donald Trump imposes "disastrous" tariffs on automobilies, EU trade commissioner Cecilia Malmstrom warned Thursday.

"We are preparing a list of rebalancing measures," Malmstrom said, as Washington studies imposing duties on cars following its tariffs on aluminium and steel.

"The world is undeniably facing challenges as a result of global overcapacity (on metals) but similar moves on cars would be disastrous," she added. 

(Photo: VCG)