The European Union dominates critical pharmaceutical imports into the United States, making the 30% tariffs Trump threatened to go into effect Aug. 1 particularly risky.

Trade negotiations between Washington and Brussels are continuing ahead of an August 1 deadline, when US President Donald Trump has vowed to impose 30 percent tariffs on nearly all goods imported from the European Union.

The European Union (EU) is considering broader countermeasures against the United States as trade tensions rise. President Donald Trump's threat of imposing significant tariffs has sparked a strong reaction from European leaders.

Leaders of the European Union and Japan have launched an alliance aimed at boosting economic cooperation, defending free trade and countering unfair trade practices as the two sides face

European shares climbed on Wednesday, buoyed by hopes of a trade agreement between the European Union and United States after Japan struck a deal that lowers tariffs on its autos, sending Japanese stocks to a one-year high.

With stocks at records, Trump's trade deal with Japan is another bullish catalyst for investors as the market moves toward the August 1 tariff deadline.