European leaders have called for a more balanced relationship with China during a summit with President Xi Jinping in Beijing.

If enforced, U.S. suppliers could face restricted access to the EU market. For example they would be unable to participate in public tenders in the bloc, there could be curbs on exports and imports, and foreign direct investment could be limited.

This week's U.S. trade agreement with Japan could provide a framework for a pact with the European Union, experts say.

European bond yields rose as the European Union and the U.S. converge on a potential trade deal that would result in lower-than-feared tariffs on the bloc's exports. Germany's benchmark 10-year yield

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.

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.

The Trump administration is pressing the European Union to accept blanket tariffs in the range of 15% or more, well above the level the bloc had initially negotiated with the U.S., people familiar with the matter said.