HANOI, Vietnam (AP) — Vietnam and the European Union on Thursday upgraded ties to a comprehensive strategic partnership, Vietnam’s highest diplomatic level, as both recalibrate trade amid disruptions to global finance driven by U.S. tariff pressure.

The upgrade places the EU on the same diplomatic footing as the United States, China and Russia and was announced during a visit to Hanoi by European Council President Antonio Costa.

“At a moment when the international rules-based order is under threat from multiple sides, we need to stand side by side as reliable and predictable partners,” Costa said, adding that the partnership is about “developing spheres of shared prosperity.”

Vietnam’s President Luong Cuong called the move a “historic milestone.”

The two sides signed a free trade agreement in 2020.