EU Parliament Greenlights US Trade Agreement Amid Conditions

Thu Mar 26 2026 17:50:43 GMT+0000 (Coordinated Universal Time)

The European Parliament has conditionally approved a significant trade deal with the US, establishing tariffs at 15% for most EU goods while ensuring US compliance with the agreement.

In a decisive vote, the European Parliament has given conditional approval to a trade agreement with the United States. The measures, passed by 417 votes to 154, impose a 15% tariff on most EU goods, down from the previously threatened 30%, in exchange for US concessions on tariffs and trade duties. Lawmakers also incorporated safeguards to enforce compliance from the US side, amid ongoing tensions related to trade policies under President Trump.

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, said European economy commissioner Valdis Dombrovskis 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 indicated that the EU would boost its investment in the US by $600bn, including military equipment purchases, and spending $750bn on energy to reduce dependency on Russian fuels.

The US and EU are each other’s largest trading partners, with over €1.6tn in goods and services exchanged in 2024, nearly a third of all global trade.

The EU recently sought to diversify its trade relationships and has signed new deals with Australia and India, reflecting ongoing strategic shifts in global trade dynamics.