European Parliament approves long-delayed EU-US trade agreement

Agreed rules allow European Commission to suspend tariff preferences if US continues to impose tariffs above 15%

---

US and European Union flags and a "tariffs" label are seen in this illustration taken April 10, 2025.PHOTO: REUTERS

---

The European Parliament on Tuesday gave its final backing to legislation implementing the European Union-United States trade agreement reached nearly a year ago, paving the way for tariff reductions while introducing safeguards aimed at protecting European industry and agriculture.

Lawmakers adopted the main regulation by 440 votes to 151, with 50 abstentions, approving tariff-free access for all US industrial goods and preferential treatment for a range of American seafood and agricultural products.

A second measure, approved by 444 votes to 152 with 54 abstentions, extends tariff-free imports of US lobster and expands the arrangement to include processed lobster products.

The legislation translates commitments made under 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 unveiled the corresponding proposals a month later, but their passage required lengthy negotiations between the European Parliament and the EU Council.

European Parliament and member states strengthened the EU Commission's original text by adding several protective measures, including a sunset clause under which the tariff preferences will expire on Dec. 31, 2029, unless renewed.

The agreed rules also allow the European Commission to suspend tariff preferences if the US continues to impose tariffs above 15% on EU steel and aluminium derivative products after December 31, 2026.

Read More: US inflation hits 3-year high as Iran war drives energy shock, rattles markets

A broader suspension mechanism was included to enable the EU to respond should Washington fail to address concerns over tariffs affecting certain European exports that had previously benefited from a 15% all-inclusive tariff ceiling.

The legislation additionally establishes a safeguard mechanism allowing Brussels to investigate and counter import surges that threaten to cause serious injury to the EU industry, including the agricultural sector.

"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," von der Leyen said on X.

The legislation now awaits formal approval by the EU Council before entering into force following publication in the EU's Official Journal.