European Parliament Moves Forward with Conditional Approval of EU-US Trade Agreement

Thu Mar 26 2026 16:41:16 GMT+0000 (Coordinated Universal Time)

The European Parliament has voted to conditionally approve a trade agreement with the United States, aiming for reduced tariffs and enhanced economic cooperation amidst ongoing geopolitical tensions.

In a significant legislative move, the European Parliament has backed a trade deal with the US that includes conditions to protect European interests amid ongoing tariff threats. A majority of lawmakers voted for the measures, setting tariffs at 15% for EU goods, down from an initially threatened 30%. The measures will require approval from all EU member states for implementation.

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 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 requires the approval from all of the bloc's 27 member states before it is implemented, with a concluding vote expected in April or May.

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

MEPs included a sunrise clause stating that EU tariff reductions will only take effect if the US upholds its commitments, including lowering tariffs to 15% on EU products containing less than 50% steel and aluminium.

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

A sunset clause will see the agreement end by March 31, 2028. Following the vote, European economy commissioner Valdis Dombrovskis confirmed that the US pledged to honour the deal.

US and EU trade relations are crucial, with each being each other's largest trading partners. Over €1.6 trillion ($1.9 trillion) in goods and services were exchanged in 2024, nearly a third of all global trade.