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.

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

EU warns Trump’s proposed 30% tariffs would cripple transatlantic trade. Brussels prepares €72bn in retaliatory measures as negotiations enter final weeks.