The European Union and the United States have reached a tentative agreement aimed at preventing new tariffs on cars and steel, according to negotiators cited late Saturday. The deal is intended to ease trade tensions and keep trans-Atlantic supply chains stable ahead of the July 1 deadline.

If finalized, the arrangement would roll back threatened duties on European vehicles and American steel, reducing the risk of a broader trade dispute between two of the world’s largest economic partners. Officials said the talks focused on avoiding immediate disruption for manufacturers and exporters on both sides.

The agreement remains provisional, and further steps are needed before it becomes binding. Still, the breakthrough signals a desire in Brussels and Washington to contain the dispute and preserve trade flows in sectors critical to jobs and industrial output.

For businesses watching the talks closely, the tentative accord offers at least temporary relief after weeks of uncertainty. A final announcement is expected only if both sides complete the remaining procedural and political approvals.

Cars

EU, US strike tentative deal to avoid new car and steel tariffs