The European Union has warned that its trade with the United States could be effectively wiped out if Washington makes good on its threat to slap a 30% tariff on goods imported from the bloc.

EU trade ministers have agreed that U.S. President Donald Trump's 30% tariffs announced on the European Union are "absolutely unacceptable," and they are studying a new set of countermeasures to respond to the move.

The bloc’s trade commissioner says two sides were close to a deal before the president last week threatened to impose a 30 percent levy.