Key facts
- European Parliament approved an EU-US trade deal, removing EU tariffs on most U.S. industrial goods.
- The deal averts immediate tariff conflict between the EU and the United States.
- The agreement requires the EU to remove import duties on U.S. industrial goods.
- The U.S. will maintain a 15% tariff on most European goods.
- The European Parliament voted 440 in favour, 151 against, and 50 abstentions.
- The deal includes safeguards and a sunset clause expiring March 31, 2029.
The European Parliament approved a trade deal with the United States, removing EU duties on most U.S. industrial goods and averting an immediate tariff conflict. The agreement, struck last July, requires the EU to remove import tariffs on U.S. industrial products in return for the U.S. maintaining a 15% tariff on most European exports.
The vote passed with 440 MEPs in favour, 151 against, and 50 abstentions, despite recent threats from U.S. President Donald Trump to impose tariffs on French wine. The European Commission, which negotiated the deal, stated it was the best possible agreement under the circumstances, partly driven by security considerations.
The deal includes safeguards, such as a suspension clause allowing the EU to revert to its previous tariff system if the U.S. breaches the agreement. Additionally, a sunset clause will terminate the trade deal on March 31, 2029, unless renewed. The EU can also suspend the agreement if the U.S. fails to lift tariffs on European steel and aluminium by the end of 2026.
Germany's VDA automotive association welcomed the approval, stating that reliable operating conditions are of paramount importance. However, the VDA noted that current U.S. tariffs of 15% on passenger cars and their parts, and 25% on trucks, still pose a significant challenge for the German automotive industry, undermining investment, jobs, and supply chains.