By Sophie Kiderlin

Copyright cnbc

However, questions remain as some issues — such as provisions for the wine and spirits sector — were left open. Concerns over further tariffs have also grown following Trump’s threat of retaliations against the EU after it hit Alphabet’s Google with a $3.45 billion antitrust fine.

Fears about the impact tariffs could have on economic growth remain. Growth in the euro zone has remained sluggish even as rates have come down, with the latest figures showing just 0.1% growth in the second quarter after a 0.6% expansion in the previous period.

Lagarde on Thursday noted that “risks to economic growth have become more balanced.”

“While recent trade agreements have reduced uncertainty, a renewed worsening of trade relations could further dampen exports and drag down investment and consumption,” she said. Lagarde also noted that “the outlook for inflation remains more uncertain than usual as a result of the still volatile trade policy environment.”

In response to a question from CNBC’s Annette Weisbach, Lagarde added that trade uncertainty had “clearly diminished” as risks like European retaliation against U.S. policy have diminished. But, Lagarde said, uncertainty has not returned to “normal”, pre-Covid levels, adding that “maybe there will not be a normal level.”