The United States and the European Union have reached a preliminary tariff agreement aimed at easing pressure on transatlantic trade in cars and semiconductors, according to Reuters. The deal is intended to reduce costs and help steady supply chains that have faced repeated disruptions in recent months.

Negotiators in Washington and Brussels worked to narrow duties on key industrial goods after manufacturers warned that higher trade barriers were worsening shortages and delaying production. Cars and chips have been among the most sensitive sectors, given their central role in global manufacturing and technology systems.

The reported accord comes as policymakers on both sides of the Atlantic look for ways to protect strategic industries without deepening supply-chain strain. While details of the arrangement have not been fully disclosed, the move signals a broader effort to limit damage from trade friction and sanctions-related disruption affecting key components from Asia.

If finalized, the agreement could offer relief to automakers, electronics producers and consumers facing higher prices. It also reflects a shared interest in keeping essential industrial links open as the US and EU try to balance economic security with lower trade costs.