A growing number of European Union member states want the bloc to activate its most powerful trade tool against the US should the two sides fail to reach an acceptable agreement by Aug. 1 and Donald Trump carries out his threat of 30% tariffs on the US’s largest trading partner.

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.

U.S. President Donald Trump on Tuesday announced a trade deal with Indonesia, the latest pact in a bid to cement better terms with trading partners and reduce a massive trade deficit, even as the European Union readied retaliatory measures should talks between Washington and its top trading partner fail.

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.

It comes as US President Donald Trump threatens to impose 30% tariffs on imports from the European Union and Mexico.

European shares nudged higher on Tuesday, driven by automobile stocks, as sentiment improved after U.S. President Donald Trump signalled a readiness to negotiate tariffs with the European Union.

The ministers met in Brussels following President Trump’s announcement of such hefty tariffs, which could have repercussions for governments, companies, and consumers on both sides of the Atlantic.

European stocks ticked up on Tuesday after US President Donald Trump indicated he is open to more trade negotiations with the European Union and Nvidia Corp. said it planned to resume sales of its H20 AI chip to China after securing Washington’s backing.