Investors are optimistic about a potential U.S.-EU trade deal ahead of next Friday’s tariffs deadline. European Commission President to meet with Trump to discuss framework deal. A deal could include a 15% baseline tariff on all EU goods entering the U.S. and a 50% tariff on European steel and aluminum.

Trade tensions have made some investors cautious, says Wells Fargo’s Sameer Samana. Easing trade tensions have pushed U.S. stocks to record highs. Investors are preparing for increased volatility leading up to August 1, the deadline for raising levies on trading partners.

EU facing U.S. tariffs on over 70% of exports. Tariffs on steel, aluminum, cars, and car parts. Trump may hike levies to 30% on most EU goods on August 1. Hopes for a deal with Europe rose after trade agreement with Japan. Deal with Japan saw auto tariffs cut to 15%.

Analysts see importance in trade deals with major U.S. partners. Deal with Japan and potential agreement with the EU are crucial. Japan’s auto sector to see tariffs cut to 15%. Lowering EU auto tariffs to 15% would have significant impact as 10% of EU shipments to the U.S. are in that category.

Read more at Yahoo Finance: Investors eye possible US-Europe trade deal as deadline looms