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.

European trade ministers were hopeful for a negotiated trade deal after Trump announced 30% tariffs on the European Union.

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.

The European Union’s top trade negotiator said he intends to speak to his U.S. counterparts Monday, adding he senses a good outcome for both sides.

The European Union's Trade Commissioner on Monday said talks with the U.S. would continue but the bloc must be "prepared for all outcomes" following the Trump administration's surprise announcement of 30% tariffs on the EU.

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