The European Union rebuffed U.S. allegations that it’s contributing to global market overcapacity, and vowed to respond “firmly and proportionally” if Washington imposes tariffs that breach a trade deal with the bloc. 

“The sources of such overcapacity are well identified, and they do not lie in Europe,” said Olof Gill, a spokesperson for the European Commission, the EU’s executive arm.

The commission’s comments come hours after the U.S. launched a probe into major trading partners, including the EU and China. Washington’s goal is to replace President Donald Trump’s global tariff regime, which the U.S. Supreme Court struck down last month. 

The investigations, which typically take months to complete, target more than a dozen major economies, alleging that they are unfairly overproducing goods. The probes are being conducted under Section 301 of the Trade Act. 

The U.S. move is complicating the European Parliament’s efforts to ratify the bloc’s trade deal with Washington. The pact was reached last July but never fully implemented, and EU lawmakers say they want more clarity on how Washington will preserve the 15% ceiling on most EU products agreed to last summer. 

U.S. officials have said they are committed to preserving that rate, but it’s still unclear how the investigations would achieve that.

“We have not received any indication that the U.S. administration intends to deviate from those commitments,” Gill said. “So we will be seeking further clarity from the U.S. on how the opening of this section 301 investigation would interact with the agreed joint statement framework.”

The lead EU lawmakers overseeing the U.S. trade pact’s ratification will meet on March 17 to determine whether to restart the approval process.