EU Parliament Approves Conditional EU-US Trade Agreement

Thu Mar 26 2026 15:37:26 GMT+0000 (Coordinated Universal Time)

In a critical development, the European Parliament has conditionally approved a trade deal with the US, aiming to lower tariffs and enhance transatlantic trade while adding safeguards for compliance.

The European Parliament has voted in favor of a conditional EU-US trade deal, setting tariffs at 15% for most EU goods and requiring US compliance with the agreement. This marks a significant shift following a period of uncertainty surrounding tariffs imposed by the US. The legislation includes provisions to suspend the agreement if the US does not honor its commitments.

The European Parliament has backed legislation to implement an EU-US trade deal, following months of uncertainty over President Donald Trump's tariff threats.

A majority of lawmakers voted in favour of the measures, adding a series of safeguards to ensure the US honors its obligations established in the agreement struck last July.

The legislation sets tariffs at 15% for most EU goods, down from an initially threatened 30%, in exchange for European investment in the US and the removal of EU import duties on US industrial goods.

In a decisive vote, the EU assembly supported the legislation with 417 votes in favor, 154 against, and 71 abstentions. The conditional framework must now be finalized by the 27 EU member states, with a concluding vote anticipated in April or May.

Lawmakers added strengthened protections in the form of provisions to halt the agreement if the US raises tariffs above 15% or imposes new duties on EU products. Additionally, a sunrise clause mandates that EU tariff reductions will only take effect if the US abides by its commitments to lower its tariffs on certain products.

After the vote, European economy commissioner Valdis Dombrovskis emphasized the need to uphold constructive relationships while remaining vigilant against any threats to EU interests. The measure marks an essential step toward revitalizing transatlantic trade relations and potentially addressing longstanding tariff disputes.