The European Parliament has given its final approval to a landmark tariff agreement with the United States, marking a decisive step toward stabilising one of the world’s largest and most closely watched trading relationships.
The deal, first agreed in July last year following a wave of US tariffs introduced under President Donald Trump, sets a 15 percent levy on most European exports to the United States. In return, the European Union has committed to removing tariffs on US industrial goods, forming the basis of a new framework for transatlantic trade.
The agreement faced delays in Europe after political tensions escalated, including Trump’s threats over Greenland and a US Supreme Court ruling that overturned several of his earlier tariff measures. Despite these setbacks, EU capitals had already endorsed the pact, leaving parliamentary approval as the final political obstacle before implementation.
In the vote held in Strasbourg, around 440 Members of the European Parliament supported the deal, while 151 voted against and 50 abstained. The backing of the European People’s Party, the Parliament’s largest group, proved decisive in securing passage.
With the vote completed, only formal procedural steps remain, including final approval by member states and publication in the EU’s official journal. Once completed, the agreement is expected to come into force within days, helping the bloc meet Trump’s earlier July 4 deadline and avoid the threat of additional tariffs on European automobiles.
European Commission President Ursula von der Leyen welcomed the outcome, saying it marked a key milestone toward removing tariffs on US industrial goods. She added that full implementation on both sides would bring broader benefits for businesses and consumers across the Atlantic.
The agreement follows a period of heightened trade tension after the Trump administration imposed sweeping duties on steel, aluminium and automotive imports. In response, von der Leyen led efforts to secure a compromise aimed at protecting economic ties between the EU and its largest trading partner, with annual trade flows valued at around $2 trillion.
Lawmakers inserted several safeguards into the final text, including a 2029 expiry date unless renewed, and a mechanism allowing the European Commission to suspend the agreement if the United States fails to meet its commitments or disrupts trade conditions.
Bernd Lange, chair of the European Parliament’s trade committee, said the agreement strengthens protections for the EU while remaining open to future adjustment. Other lawmakers described the vote as a step toward stability in transatlantic relations, while acknowledging that political tensions with Washington are likely to continue.
Despite differing views, supporters of the deal said the agreement establishes a framework intended to reduce uncertainty and support long-term economic cooperation between the two sides.
