EU Parliament approves US trade deal easing tariff tensions

The European Parliament has approved a trade deal between the EU and the US aimed at reducing tariff tensions and improving trade relations. The agreement sets a 15% US tariff cap on most EU goods, while the EU will remove duties on selected US products and expand market access. The deal, agreed last year between Donald Trump and Ursula von der Leyen, was delayed by legal and political issues but has now passed parliament with a strong majority. It will proceed to final approval by EU member states.

The European Parliament has formally approved a trade agreement reached last year between the European Union and the United States, marking an important step in efforts to stabilise trade relations between both sides.
Under the deal, the European Union agreed to remove import duties on several categories of United States goods and to make it easier for American products to access its market. In return, the United States agreed to cap tariffs on most European Union exports at 15 percent. The aim of the arrangement is to reduce trade tensions and prevent a return to the kind of tariff disputes that previously strained relations between Brussels and Washington.
The agreement was widely debated among Members of the European Parliament. Supporters argued that it provides a more predictable framework for transatlantic trade and helps protect key economic interests at a time of global uncertainty. Others, however, expressed concern that the EU may have made significant concessions in exchange for limited guarantees on US tariff policy.
Despite the debate, the deal was approved with a clear majority. Lawmakers said the decision was influenced by the need to ensure stability for businesses and avoid further escalation of trade disputes.
The chair of the European Parliament’s trade committee, Bernd Lange, said the agreement was reached under significant pressure but that EU negotiators managed to secure important safeguards to protect European interests. He also stressed that the Parliament would continue to monitor how the agreement is implemented to ensure that all sides comply with its terms.
Industry representatives also welcomed the decision. The German Association of the Automotive Industry (VDA) urged swift implementation of the agreement, stressing that companies depend on stable and predictable trade conditions. Its president, Hildegard Müller, highlighted that reliability in operating conditions is essential for investment planning and long-term competitiveness in the automotive sector.
The agreement itself was originally reached in August last year between US President Donald Trump and European Commission President Ursula von der Leyen. It was designed as a compromise: the United States would limit tariffs on European goods, while the EU would remove tariffs on US industrial products and expand market access for selected American agricultural goods such as pork and dairy products.
However, the implementation process faced delays due to unresolved legal and technical issues at the time the deal was announced. Additional complications also emerged following a US Supreme Court decision that struck down several tariffs introduced during the Trump administration, adding uncertainty to the broader trade environment.
Political tensions further slowed progress, including disputes linked to Trump’s comments regarding Greenland, which contributed to hesitation within Europe over how quickly to implement the agreement.
Eventually, a deadline of July 4 was set by Trump for the European Union to fully implement its commitments under the deal, increasing pressure on EU institutions to finalise approval.
In the final vote, 440 Members of the European Parliament supported the agreement, 151 voted against it, and 50 abstained. With parliamentary approval now secured, the deal will now proceed to the final stage, where EU member states are expected to give their formal endorsement, a step widely considered a formality since governments had already signalled support during earlier negotiations.