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.

After months of fraught negotiations with the United States, Japan clinched a deal just days before punitive tariffs were scheduled to take effect.

President Donald Trump signed a trade deal with Japan Tuesday, "pleasantly surprising investors," Reuters said. It lowers tariffs on imported Japanese goods — including cars and auto parts — from 25% to 15%. Japan will also invest $550 billion in the U.S. S&P 500 and Nasdaq futures were up slightly on the news; Japan's Nikkei jumped 3.7%.