European Parliament Approves EU-US Trade Deal with Conditions

Thu Mar 26 2026 16:44:49 GMT+0000 (Coordinated Universal Time)

The European Parliament has conditionally approved the EU-US trade deal with a focus on tariff reductions and safeguards for European interests.

In a significant legislative step, the European Parliament has backed the EU-US trade agreement after a majority vote of 417 in favor against 154. This deal, which follows months of uncertainty due to US tariff threats, sets tariffs at 15% on most EU goods, significantly lower than the proposed 30%. The deal includes strict safeguards ensuring the US complies with terms, especially regarding other tariffs on EU products. Final implementation awaits unanimous approval from all 27 EU member states.

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 on Thursday, but added a series of safeguards to ensure the US honours 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 following 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 favour of the legislation.

The text will need to be signed off by all of the bloc's 27 member states before it is implemented, with a concluding vote expected in April or May.

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

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

When the framework agreement was announced last summer, Trump said the 50% US tariff on global steel and aluminium would still apply to the EU.

A sunset clause will see the agreement end by 31 March 2028.

At this stage, we have received reassurances from the US that they intend to honour the deal, European economy commissioner Valdis Dombrovskis said after the vote.

While we will continue our efforts to maintain constructive relationships and avoid volatility, we will not turn a blind eye to any risks to our interests.

EU trade commissioner Maros Sefcovic described the vote as a crucial step.

The framework agreement was made during a meeting between European Commission President Ursula von der Leyen and Trump at the president's Turnberry golf course in Scotland last July.

Von der Leyen hailed it as a huge deal, while Trump said it was a good deal for everybody.

Trump said at the time that the EU would boost its investment in the US by $600bn (£446bn) - including purchases of American military equipment - and spend $750bn on energy.

Von der Leyen said increased purchases of American liquified natural gas, oil and nuclear fuels would help reduce Europe's reliance on Russian energy.

The US and the European Union are each other's largest trading partners.

More than €1.6tn ($1.9tn, £1.4tn) in goods and services were exchanged in 2024, according to European figures - nearly a third of all global trade.

Trade in goods alone totalled about $976bn in 2024. The US imported roughly $606bn in goods from the EU and exported around $370bn.

Trump has wielded tariffs against many US trading partners in what he describes as an effort to reduce the US trade deficit and reshape the global trading system.

Since Trump's announcement of global tariffs on Liberation Day last year, the EU has sought to diversify its trade relationships.

The bloc signed a sweeping trade deal with Australia earlier this week, and in January announced a landmark trade deal with India after nearly two decades of on-off talks.