President of the European Council Donald Tusk and Japanese Prime Minister Shinzo Abe signed the agreement Tuesday in Tokyo.
The U.S. launched the disputes at the World Trade Organization on Monday.
President Donald Trump recently called the European Union a "foe" in terms of trade.
The Trump administration said it would impose additional tariffs worth $200 billion on Chinese goods in retaliation for China's retaliatory tariffs.
The measure was prompted by President Donald Trump's tariffs on steel and aluminum that overwhelmingly affected U.S. allies.
The U.S. is gearing up to impose new import taxes on 6,000 Chinese goods.
Agriculture is a big business in Midwestern states, and China is one of their biggest customers.
Tariffs on $34 billion worth of Chinese goods are about to go into effect.
German Chancellor Angela Merkel says she would support reducing EU tariffs on U.S. cars.
The chamber argues that the recent tariffs will make U.S.-made goods pricier, leading to lost sales and lost jobs.
The Commerce Department announced in May that it was considering whether new auto tariffs would help protect America's national security.
Mexico, Turkey and the European Union have also announced tariffs in response to President Donald Trump's import tax on steel and aluminum.