European Parliament ratifies Trump trade deal, eliminating duties on US industrial goods while locking in 15% tariffs on EU exports

The European Parliament gave its final approval on Tuesday to the tariff agreement with the United States, closing a protracted chapter of transatlantic trade tension that began with the deal struck at Donald Trump's Turnberry golf course in Scotland in July 2025. The vote, with 440 in favour, 151 against and 50 abstentions, was the last major political hurdle before the pact can take effect.

The vote

Under the agreement, the EU will eliminate most duties on US industrial goods, including machinery, car parts, semiconductor equipment and certain chemicals, while also providing preferential access to American agricultural products and seafood. In return, the United States caps tariffs on the bulk of European exports at 15%. The trade relationship is worth an estimated $2 trillion annually.

With this milestone, we are days away from fulfilling our commitment to remove tariffs on imports of US industrial goods.

A year of delays

The framework was agreed in July 2025, but the EU did not immediately pass the implementing legislation. The ratification process was suspended twice: first in January 2026 after Trump renewed threats over Greenland, and again when the US Supreme Court ruled many of his tariffs illegal. Trump, frustrated by the delay, threatened "much higher" levies unless the bloc acted by July 4, America's Independence Day, raising the spectre of punitive tariffs on European vehicles.

Even after negotiations resumed, tensions persisted. In February, Trump raised auto tariffs to 25%, a move critics called a breach of the Turnberry ceiling. On Monday he threatened 100% tariffs on French wine and Champagne over digital taxes. The final compromise text was agreed between the Parliament and EU member states on 20 May.

This agreement is still far from perfect, but it is considerably stronger.

Safeguards built in

MEPs inserted several protective measures. A sunset clause terminates the deal on 31 December 2029 unless renewed. The European Commission gains the power to suspend tariff preferences on steel and aluminium derivatives if the US does not reduce those tariffs below 15% by the end of 2026. The Commission must report to Parliament by 1 December 2026, and a broader assessment of the impact on EU industry and small businesses is due by 30 June 2029.

Tech tensions remain

The deal covers semiconductors, but the unresolved dispute over large digital platforms sits outside the legislation. US Commerce Secretary Howard Lutnick has explicitly linked further tariff relief to the EU weakening its Digital Markets Act and Digital Services Act, laws that can fine tech companies up to 10% of their global turnover. Trump's February 2025 executive order branded European digital services taxes "overseas extortion," and his latest threats against French wine reflect the ongoing fight over digital levies.

Next steps

Member states must still give a final rubber stamp, expected in the coming days, and the text will be published in the EU's official journal before it enters into force. EU leaders are set to formally adopt the deal when they meet in Brussels on Thursday. The news came as European and national leaders gathered alongside Trump in Évian-les-Bains, France, for a Group of 7 meeting.