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EU parliament approves US tariff deal with key conditions

EU lawmakers back a 2025 tariff pact with the US but add safeguards against future Trump trade actions, as Brussels diversifies global ties.

BRUSSELS: The European Parliament has conditionally approved the bloc’s 2025 tariff agreement with the United States.

Lawmakers endorsed the deal but added significant safeguards in response to ongoing trade tensions.

The vote represents a crucial step towards implementing the pact, which sets tariffs at 15% for most EU goods. EU economy chief Valdis Dombrovskis called it “an important procedural step and a political signal that the EU stands by its word.”

Approval follows months of delays due to transatlantic disputes and a US Supreme Court ruling. The European Commission urged lawmakers to proceed after receiving reassurances from Washington.

New provisions were added to the agreement as a direct response to President Donald Trump’s policies. These include an automatic expiry for EU tariff cuts in March 2028.

Tariff reductions on steel and aluminium are now tied to similar US concessions. “Let’s not be naive. More Trump coercion and chaos will come,” said EU lawmaker Kathleen Van Brempt.

The deal still requires final negotiation with EU member states. EU trade commissioner Maros Sefcovic will discuss implementation with US Trade Representative Jamieson Greer this week.

The EU is simultaneously racing to diversify its trade partnerships globally. It has recently signed deals with Mercosur, India, and Australia.

This diversification drive is a strategic priority for Commission chief Ursula von der Leyen. The goal is to reduce overdependence on both the United States and China.

Economist Andre Sapir said “the Trump factor sped up their conclusion.” He described the EU’s expanding free trade network as a strategic weapon with a “defensive dimension.”

Sapir argued these agreements give the EU weight in discussions with economic giants. “These agreements are part of our arsenal,” he added.

The EU-US trade relationship is worth approximately 1.6 trillion euros. Brussels aims to protect this vital economic link while building resilience against future shocks.

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