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 commissioner Maroš Šefčovič Maroš Šefčovič stated that the introduction of 30% tariffs on European imports would actually destroy transatlantic trade, The Guardian reports. The European Union is warning of the risk of a complete freeze in trade with the United States due to a new initiative by Donald Trump.

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.