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

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.

"A tariff of 30% on EU exports would probably have the eurozone economy flirting with, but avoiding, a recession," said Rory Fennessy, senior economist at Oxford Economics. This fits Trump's playbook — he threatened 50% tariffs in May, "only to quickly backtrack following discussions with EU politicians."