The European Commission said on Thursday a negotiated trade solution with the United States is within reach - while EU members voted to approve counter-tariffs on 93 billion euros ($109 billion) of U.

Japan and Europe are two of the U.S.’s largest trading partners and now that the markets have some certainty around trade, it’s back to “risk-on” for investors, according to Jim Reid’s team at Deutsche Bank.

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 growing challenges from the United States and China.

View PDF After more than three months of formal negotiations and many more months of speculation about the Trump administration’s trade and economic policy toward Japan, Washington and Tokyo have agreed to a trade deal.

The economic partnership agreement with Japan has been in force for over five years. At full implementation, the agreement scraps 99% of tariffs for the EU and 97% for Japan. Compared to 2018 (the last year before the agreement), total trade between the EU and Japan grew by close to 20%.

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.

EU And Japan Strike Trade Deal, Call It 'Strong Message To The World' : The Two-Way The European Union and Japan have reached an agreement in principle for a new free trade deal.