European Parliament approves EU-US trade deal, defusing Trump's July 4 tariff threat
With 440 votes in favor, the European Parliament passed legislation on Tuesday to scrap EU tariffs on US industrial goods, fulfilling the bloc's half of a deal struck last summer in Scotland and heading off a threatened tariff escalation before President Trump's July 4 deadline.
The vote
Meeting in Strasbourg, MEPs voted 440 to 151, with 50 abstentions, to approve the long-delayed trade agreement between the European Union and the United States. A second regulation extending duty-free treatment for American lobster passed 444 to 152 with 54 abstentions. The votes mark the final political step before formal adoption by EU member states.
- Von der Leyen and Trump agree framework deal at Turnberry golf course.
- Parliament and Council negotiators reach compromise on safeguard clauses.
- European Parliament votes to approve the deal.
- Trump's deadline; deal expected to enter into force.
- Agreement automatically expires unless renewed.
Backdrop and pressure from Washington
The framework deal was agreed in July 2025 by EU Commission President Ursula von der Leyen and US President Donald Trump at Trump's Turnberry golf resort. Under its terms, the EU committed to eliminating tariffs on US industrial goods and granting preferential market access to US farm and seafood products, while Washington capped duties on most EU exports at 15 percent and lowered levies on European cars.
Months of delay followed: EU capitals hesitated after a US Supreme Court decision struck down some of Trump's tariffs and after the president threatened Greenland and Spain, prompting parliament to hold out for additional protections. Trump responded by setting a deadline of July 4, the US Independence Day, warning that European vehicles would face new tariffs if Brussels failed to deliver.
The tariffs will unfortunately immediately rise to a much higher level.
What the deal contains
The main regulation removes all EU duties on US industrial goods, including cars and machinery, in exchange for Washington's 15 percent ceiling on most European imports. It also presses Washington to reduce tariffs on washing machines and other steel-containing products to 15 percent by the end of 2026. The transatlantic trade relationship covers nearly 30 percent of global goods and services trade and 43 percent of global economic output.
Safeguards Europe demanded
Negotiators from parliament and the Council inserted a series of safeguards during talks in May. The text now includes an automatic expiration date of 31 December 2029, unless explicitly renewed, a sunset clause timed to the end of Trump's second term. The European Commission also gains the power, with member-state backing, to suspend the EU's tariff concessions if the US breaches its commitments or disrupts trade and investment. Additional measures allow Brussels to hit back if Washington maintains 50 percent surtaxes on hundreds of steel and aluminium products beyond this year.
What happens next
Following parliament's approval, the file now requires a final formal endorsement by the EU Council, expected within days or weeks. Publication in the union's official journal will follow, and the agreement is set to enter into force well before the July 4 ultimatum. The path closes a volatile chapter in transatlantic economic relations while leaving the door open for future revision.
