This week's U.S. trade agreement with Japan could provide a framework for a pact with the European Union, experts say.

However, the European Commission, which leads trade policy for the EU, has already prepared a plan to hit back with more than $100bn in tariffs if talks collapse. It comes as EU exporters have already been facing a 10 percent tariff on goods sent to the US since April, on top of pre-existing levies.

United States and European officials have signalled progress in tariff talks, after US President Donald Trump announced a pact with Japan and China said its vice premier would attend bilateral negotiations next week.