Implementation of the EU–US Framework Agreement is essential to bring greater stability to transatlantic trade and investment. With the Commission’s tariff reduction proposals now before the European Parliament and the Council of the EU, swift adoption is critical to help businesses plan ahead. The co-legislators should therefore: 1) stick to the agreed scope, 2) avoid unnecessary duplication and 3) focus on restoring predictability for businesses. Following these principles will ensure the EU and the US can continue building on the Agreement while preventing a tit-for-tat that would harm both sides.

Following the EU-US Framework Agreement, AmCham EU conducted a flash survey of its members to find out how they expect the transatlantic business relationship to evolve in light of the deal. This survey builds on our poll from January, which captured business expectations for the new EU and US administrations around US Inauguration Day. The September survey finds that, while American companies in Europe maintain a pessimistic outlook on transatlantic trade and investment, the Framework Agreement has nearly cut this pessimism in half (down to 46% from 89% in January).

Authored by Malte Lohan, CEO, AmCham EU

By tabling two proposals to implement the EU-US framework agreement, the European Commission has moved quickly to bring more predictability to transatlantic trade. The European Parliament and Council should now follow suit and approve the proposals without delay. We are concerned that any attempt to postpone or reopen the agreement – whether initiated in Brussels or Washington, DC – would undermine the predictability that the deal seeks to establish. The sooner the deal is fully implemented, the sooner businesses will benefit from a more stable trading environment and both sides can build on the terms set out in the EU-US Joint Statement. 

For more on the EU-US Joint Statement, read AmCham EU’s initial take on the deal, including the importance of expanding the number of sectors in the zero-for-zero tariff list, with the goal of creating a zero-tariff zone across the Atlantic. 

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.

AmCham EU is concerned about the United States potentially imposing a 30% tariff on EU imports as of August 1. This move would generate damaging ripple effects across all sectors of the EU and US economies. Tariffs disrupt supply chains and add costs and complexity for businesses on both sides of the Atlantic, undermining their competitiveness. In this context, the EU’s decision to hold off on imposing countermeasures against the US until early August is a constructive signal. It provides relief to industry, helps avoid further escalation and creates space for continued dialogue. The two sides must urgently seek a negotiated outcome to the ongoing dispute with the goal of lowering barriers to trade.

The transatlantic economic relationship – worth €8.7 trillion – remains the most integrated in the world. Despite political tensions, the EU and the US share more priorities than differences. A permanent solution to transatlantic trade is needed to ensure long-term predictability for American and European companies.