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.

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 Lone Star State sells about $100 billion of goods and services to Europe each year, more than any other state.

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 European Union will delay the implementation of its trade countermeasures against the United States from Monday until early August to allow more time to negotiate a deal.

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.

European trade ministers are meeting in Brussels following U.S. President Donald Trump’s surprise announcement of 30% tariffs on the European Union.