The European Union and the U.S. are moving toward a trade deal that could include a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday, potentially moving President Donald Trump closer to another major trade agreement on the heels of the one he just unveiled with Japan.

With his tariff deadline approaching on August 1, US President Donald Trump is stepping up pressure on other trading partners to build momentum for talks. This comes after he announced a "massive" deal with Japan on Tuesday.

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.

TOKYO (AP) — Prime Minister Shigeru Ishiba on Wednesday vowed to remain in power to oversee the implementation of a new Japan-U.S. tariff agreement, despite media speculation and growing calls for him to resign after a historic defeat of his governing party.

Japan is seeking talks between tariff negotiator Ryosei Akazawa and U.S. Treasury Secretary Scott Bessent when the U.S. official visits Japan for the World Expo next week, Yomiuri newspaper reported on Thursday citing Japanese government sources.