European Parliament Approves EU-US Trade Deal with Conditions

Thu Mar 26 2026 16:49:43 GMT+0000 (Coordinated Universal Time)

The European Parliament has granted conditional approval to an EU-US trade deal, igniting discussions on tariffs and trade relations amid geopolitical uncertainties.

In a pivotal vote, the European Parliament supported a trade deal with the US, reducing tariffs from 30% to 15% on most EU goods in exchange for US investment. The deal includes safeguards to ensure the US honors its commitments, with final approval pending from EU member states. Lawmakers added several conditions to protect EU interests amidst past tariff threats from the Trump administration.

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 favor of the measures, but added a series of safeguards to ensure the US honors its side of the deal struck last July.

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

The vote comes after months of delay spurred by Trump's threats to annex Greenland and a US Supreme Court ruling that found some of his tariffs unlawful.

The EU assembly voted by 417 to 154, with 71 abstentions, in favor of the legislation, which still requires sign-off from all 27 EU member states before implementation. A final vote is expected in April or May.

On Thursday, lawmakers opted to strengthen the safeguards, including a provision to suspend the agreement if the US imposes additional tariffs above 15% or introduces new duties on EU goods. Another clause will halt the deal if the US threatens the EU's territorial sovereignty.

MEPs also included a sunrise clause that means EU tariff reductions will only activate if the US upholds its side of the bargain, which includes lowering tariffs to 15% on EU products that contain less than 50% steel and aluminium.

When the framework agreement was announced last summer, Trump stated that the 50% US tariff on global steel and aluminium would remain applicable to the EU.

The agreement consists of a sunset clause that anticipates its conclusion by March 31, 2028.

European Economy Commissioner Valdis Dombrovskis expressed his confidence in the deal, stating that reassurances had been received from the US that they intend to honor the agreement, while EU Trade Commissioner Maros Sefcovic described the vote as a crucial step in building stronger trade relations.

Once implemented, this deal is expected to solidify the US and the EU's status as each other's largest trading partners, with trade reaching over €1.6tn in 2024 alone.