(March 26): European Union lawmakers finally approved a trade deal with the US, clearing a key obstacle for the long-delayed agreement despite lingering uncertainty about Washington’s tariffs.
The European Parliament voted in favour of the deal on Thursday. The pact would erase tariffs on US industrial goods, while setting a 15% tariff ceiling for most EU products.
The move signals potential relief for a growing irritant in the transatlantic relationship. The US has been upping its pressure on the EU to finally implement the deal, which was originally struck last summer. But EU lawmakers have held out, repeatedly delaying ratification after President Donald Trump’s threatened to seize Greenland and the Supreme Court invalidated Washington’s global tariffs.
The vote is “a very important milestone in our efforts to provide stability and predictability to European business, workers and citizens in our trade relationship with the United States,” said EU economy commissioner Valdis Dombrovskis, speaking to lawmakers on Thursday morning.
Before approving the deal on Thursday, EU lawmakers added amendments to address some of the doubts. One clause would ensure the agreement isn’t implemented until the US honours its commitments. Another would have the pact expire in March 2028 unless both sides agree to extend it.
Lawmakers will now negotiate with member states over these edits to settle on a final text.
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After Thursday’s vote, US ambassador to the EU Andrew Puzder applauded the move, saying it offered “stability and predictability” for businesses. He encouraged the EU to swiftly “finalise this significant milestone in the US-EU trade relationship.”
The EU is also waiting on the US, however, keen to see how it can replace the 15% rate agreed to when the deal was initially reached last summer between Trump and European Commission president Ursula von der Leyen, the bloc’s top executive.
The US recently launched fresh probes into major trading partners, including the EU and China, aiming to replace the so-called reciprocal tariffs that the Supreme Court struck down. The investigations, which typically take months to complete, could result in new levies against the EU, although Washington told Brussels it would stick to its part of the deal.
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Europeans also want the US to clarify how it intends to lower a 50% duty for hundreds of products containing steel and aluminium, which has become a major source of frustration.
“Despite these valid concerns, one truth remains valid, our economic interests demand that we move forward,” Dombrovskis said. “Our credibility depends on keeping our word.”
If trade tensions flare again, Germany is already exploring ways it could apply retaliatory pressure to cause political pain on Trump, Bloomberg reported. Among the options being discussed are targeting American tech firms with White House ties, or going after the AI boom fuelling the US stock market.
The EU-US trade pact has faced a rocky path since its inception last July.
Many EU countries and right-wing lawmakers have argued the asymmetrical terms were worth it to avoid a trade war and preserve US security commitments, especially in Ukraine. But left-wing EU lawmakers have consistently criticised that approach, calling for the bloc to renegotiate its terms.
Uploaded by Evelyn Chan
