European Parliament backs EU-US trade deal, clearing way for tariff cuts

BRUSSELS: The European Parliament on Tuesday approved legislation to implement the European Union’s trade agreement with the United States, moving the bloc closer to lowering tariffs while adding protections for European industry and agriculture.

Lawmakers passed the main regulation by 440 votes to 151, with 50 abstentions. The measure grants tariff-free access to all US industrial goods and provides preferential treatment for a selection of American seafood and farm products. In a separate vote, parliament approved another measure by 444 votes to 152, with 54 abstentions, extending duty-free imports of US lobster and widening the arrangement to cover processed lobster items as well.

The legislation gives effect to commitments made in the joint statement agreed by US President Donald Trump and European Commission President Ursula von der Leyen in Turnberry, Scotland, in July 2025. The European Commission presented the related proposals a month later, but approval took longer as negotiations continued between the European Parliament and the EU Council.

Protective clauses added

During the legislative process, the parliament and EU member states revised the Commission’s original draft by introducing a series of protective provisions. These include a sunset clause under which the tariff preferences will end on Dec. 31, 2029, unless they are extended.

The new rules also allow the European Commission to halt tariff preferences if the United States keeps tariffs above 15% on EU steel and aluminium derivative products beyond Dec. 31, 2026. Another, broader suspension tool was added so the EU can respond if Washington does not resolve concerns linked to tariffs affecting certain European exports that had earlier been covered by a 15% all-inclusive tariff ceiling.

The legislation further creates a safeguard mechanism enabling Brussels to examine and address import surges that risk causing serious harm to EU industry, including the agricultural sector.

Von der Leyen welcomes vote

Reacting to the result in a post on X, von der Leyen said the vote brought the agreement close to implementation on the European side.

With this milestone, we are days away from fulfilling our commitment to remove tariffs on imports of US industrial goods. With full implementation on both sides, our agreement will deliver even more benefits for citizens and businesses

She also said she welcomed the parliament’s positive vote on the EU-US trade agreement, adding that the European Union was delivering on its side of the deal.

The legislation still requires formal approval from the EU Council. It will enter into force after publication in the EU’s Official Journal.