The European Union and the U.S. are heading for a potential trade deal that includes 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 securing another major trade agreement hours after he unveiled one with Japan.

U.S. President Donald Trump has now set his sights on trade negotiations with the European Union, after announcing a framework agreement with Japan. "We have Europe coming in tomorrow, and the next day, we have some other ones coming in," Trump said late on Tuesday, without specifying details.

The U.S. and the European Union are reportedly close to finalizing a trade deal that could impose a 15% tariff on European imports. Brussels could agree to the reciprocal tariffs to avoid U.S. President Donald Trump's threat to raise them to 30% from August 1,

On his own terms, it could now be said that the aggressive approach by the US President is yielding tangible results.

Trading updates and corporate earnings from some of Europe’s auto giants show the extent to which Trump’s tariffs have started to take their toll.

April 9: Trump's higher "reciprocal tariffs" begin just after midnight. Hours later, the president says he is issuing a 90-day pause on those duties, except for China. Trump raises tariffs on Chinese goods from 104% to 145%, the highest rate so far this year.

The United States appears firm on its slated tariff increase on the EU following comments made by U.S. Commerce Secretary Howard Lutnick over the weekend.

President Trump's threatened 30% tariffs on the EU might prompt some businesses to take another look at the U.K.