The framework agreement reached between the EU and the US provides relief to businesses bracing for significant disruption across global supply chains. The deal brings much-needed de-escalation in the ongoing dispute and greater certainty for companies. However, a 15% tariff still marks a significant increase in the cost of trading across the Atlantic for many sectors. 

The EU and the US must now build on this deal to reach a permanent agreement, with technical details defined as soon as possible. Clarity over implementation, including next steps for Section 232 tariffs, will be critical for companies, who need a predictable framework to operate. The EU and the US should expand the number of sectors included in the deal’s zero-for-zero tariff list, with the goal of creating a zero-tariff zone across the Atlantic.

Ultimately, the two sides should advance regulatory cooperation and a shared approach to common geopolitical challenges. The commitment to work more closely on issues such as energy, defence, technology and global overcapacity is a constructive first step in reinforcing the transatlantic economic partnership.