The Framework Agreement reached between the EU and the US dominated the headlines over the summer. While business would have liked to see the deal go further on tariff reduction, it has prevented the escalation of tensions into a full-scale trade war that would have caused severe disruption to transatlantic commerce.
In this opinion piece, Malte Lohan, CEO, AmCham EU, makes the case for a swift implementation of the agreement. As he points out, ‘the path that provides the best foundation for restoring much-needed predictability is the one that builds on the deal we have’.
- Context of Trade Relations: The summer of 2025 saw intensified EU-US trade tensions, culminating in a framework agreement on July 27. However, subsequent tariff threats from President Trump and legal challenges to existing tariffs raised concerns about escalating trade conflicts.
- Support for the Framework Agreement: While acknowledging the imperfections of the agreement, AmCham EU expressed cautious support, emphasizing the importance of avoiding a potential trade war that could have led to punitive tariffs of 30% or more. The agreement, despite imposing 15% tariffs, is seen as a more manageable outcome that prevents further escalation.
- Implications for Businesses: The 15% tariffs will increase trade costs and impact integrated transatlantic supply chains, affecting both European and American companies. However, the agreement provides a foundation for future cooperation and potential tariff reductions in various sectors, aiming to enhance predictability in the EU-US trade relationship. The focus is now on implementing the agreement and respecting regulatory autonomy on both sides to maintain momentum.
Source AmCham EU
