EU Parliament Approves Revised EU-US Trade Agreement

Thu Mar 26 2026 15:56:47 GMT+0000 (Coordinated Universal Time)

The European Parliament has conditionally approved a significant trade deal with the US, aimed at reducing tariffs on EU goods amid ongoing concerns over trade policies.

The European Parliament has voted in favor of a framework for an EU-US trade deal, implementing a 15% tariff on most EU goods, while introducing safeguards to ensure compliance from the US. With a vote of 417 in favor, 154 against, and 71 abstentions, the legislation aims to bolster trade ties amid previous tariff threats and is expected to conclude by 2028. The agreement is pending 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, 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 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 favor 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 safeguard 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—specifically lowering tariffs to 15% on EU products that contain less than 50% steel and aluminium.

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 described it as good for everybody with anticipated investments boosting the US economy significantly.

With over €1.6 trillion ($1.9 trillion) in goods and services exchanged between the US and EU in 2024, both are each other’s largest trading partners, making this agreement crucial for future economic relations.