Christine Lagarde, president of the ECB, said the US-EU trade deal brings clarity, but uncertainties persist in key sectors.

The trade deal agreed between the US and the European Union is broadly in line with European Central Bank forecasts, but uncertainties remain in areas such as pharmaceuticals and semiconductors. The EU has agreed to additional tariffs of 15% on most exports to the US, which will slow economic growth but avoid an all-out trade war. Lagarde stressed the need to diversify EU trade to counter the impact of US tariffs.