After months of escalating tariffs, President Donald Trump’s announcement Wednesday that the United States and the European Union will work together toward mutual “zero tariffs, zero non-tariff barriers” may mark a turning point in our relationships with our allies and trading partners. More, it sends a powerful message to the world that the U.S. supports fair, free, and – critically – reciprocal trade.

In a Rose Garden speech alongside European Commission President Jean-Claude Juncker, President Trump underscored the strong trade relationship between the U.S. and the EU: “The United States and the European Union have a $1 trillion bilateral trade relationship — the largest economic relationship anywhere in the world. We want to further strengthen this trade relationship to the benefit of all American and European citizens.”

This is an encouraging sign; the president appears to be backing down from his hard line with the EU and working toward a solution to wind down a tariff war that’s had leaders from a wide range of sectors – economists, politicians, manufacturers and innovators of all stripes – holding their breath.

We need more dialogue like this with our trade partners. Consumers have already started to feel the effects of the tariffs on Chinese, Canadian, Mexican and European goods. Tariffs on farming equipment, medical devices, steel and aluminum mean American businesses are paying more for the items they need to operate and many are forced to pass these price increases on to consumers.

The consumer tech industry has been hit particularly hard. According to a study commissioned by the Consumer Technology Association and the National Retail Federation, prices on products consumers use to access and interact with the digital world could rise as a result of the Trump administration’s proposed tariffs on imports from China.

The auto industry has been hit, too. In their Q2 earnings calls, General Motors, Fiat Chrysler and Ford Motor Co. all reported lower profits and growing challenges for the second half of the year, driven in large part by the looming China tariffs.

Interestingly, this announcement comes one week after the European Commission’s decision in July to levy a record $5 billion fine against Google for antitrust violations. The EC claims Google uses its Android operating system to block rivals. But the truth is the technology marketplace is healthy and dynamic, and consumers pick the digital companies that best suit their needs. Tactics by European regulators to block U.S. innovators in hopes of spurring home-grown tech talent run counter to the idea of open and reciprocal relationships and end up hurting companies on both sides of the Atlantic. As Larry Downes wrote in the Washington Post, "The E.U., it seems, has given up hope of competing fairly with the United States. Instead, it’s simply using the American tech economy as its personal ATM."

Trump’s zero tariffs announcement is his latest move to burnish his pro-business credentials. Since Trump took office, restrictive business rules have been cut and burdensome taxes have been lowered. Government leaders with business experience are receptive to input from industry on how to increase efficiency and productivity. The EC could learn from the Trump administration’s successes: Economic micromanagement and unfair rules will never succeed in creating a vibrant and competitive innovation industry.

True to his campaign promises, President Trump’s advocacy for America’s place in world trade, though unconventional, has resulted in global attention. Let’s hope the Trump administration works to build more “zero tariff” relationships. Moves like these will propel the U.S. economy and offer new opportunities to workers across sectors.

Gary Shapiro is president and CEO of the Consumer Technology Association (CTA)TM, the U.S. trade association representing more than 2,200 consumer technology companies, and author of the New York Times best-selling books, Ninja Innovation: The Ten Killer Strategies of the World's Most Successful Businesses and The Comeback: How Innovation Will Restore the American Dream. His views are his own. Connect with him on Twitter: @GaryShapiro