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.

Expectations of where inflation will be in the coming years, already declining, have taken a further dive as a result of the trade agreement between the U.S. and Japan.