European Parliament Moves Forward with Conditional EU-US Trade Deal

Thu Mar 26 2026 16:38:27 GMT+0000 (Coordinated Universal Time)

The European Parliament has approved a landmark trade deal between the EU and the US, contingent on the latter honoring its commitments. The deal aims to reduce tariffs significantly while addressing previous concerns over trade practices.

In a significant legislative move, the European Parliament has given conditional approval to an EU-US trade deal aimed at enhancing economic collaboration while safeguarding European interests. The approved measures will later require ratification by the EU's member states.

The European Parliament has backed legislation to implement an EU-US trade deal, marking a crucial step in transatlantic relations following months of uncertainty due to President Donald Trump's tariff threats.

A majority of lawmakers voted in favor of the agreement, which includes a series of safeguards to ensure the US honors its commitments made in a deal struck last July. The proposed legislation would set tariffs at 15% for most EU goods, down from the initially threatened 30%, while also leading to the removal of EU import duties on US industrial goods.

After lengthy discussions and delays caused by various geopolitical tensions, including Trump's threats to annex Greenland and legal challenges against his tariffs, the EU assembly finally voted 417 to 154, with 71 abstentions, in favor of the trade deal. This comes with a requirement for ratification by all 27 member states before it can be implemented, with a concluding vote anticipated in April or May.

Lawmakers have strengthened the agreement's safeguards, including provisions that would allow for suspension of the deal if the US raises tariffs above 15% or imposes new duties on EU goods. There’s also a 'sunrise clause' which conditions EU tariff reductions on the US maintaining its commitments, particularly pertaining to goods containing steel and aluminum.

European economy commissioner Valdis Dombrovskis expressed cautious optimism, noting, At this stage, we have received reassurances from the US that they intend to honor the deal,” while remaining vigilant about protecting EU interests from any volatility. EU trade commissioner Maros Sefcovic called the parliament's decision a 'crucial step' towards a more stable economic future.

During the original framework's announcement in July, Trump touted that the EU would significantly increase its investment in the US, which included spending on American military equipment and energy resources, thereby enhancing the economic ties between both regions.