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.

Italy's foreign minister warned that, while he hopes for successful negotiations, the EU will respond resolutely to Trump's latest tariff threat.

EU trade ministers have agreed that US President Donald Trump’s announcement of 30 per cent tariffs on the European Union was ’absolutely unacceptable’