After multiple delays, EU lawmakers approve trade agreement with the U.S.

The European Parliament has finally approved a trade agreement with the United States, although uncertainties surrounding Washington’s tariff policy remain. This vote removes a key obstacle facing the long-delayed agreement.

The European Parliament voted in favor of the agreement on Thursday. The agreement will eliminate tariffs on American industrial products while setting a 15% tariff cap on most EU products.

This move signals a relief of a major friction point in transatlantic relations. The United States has been increasing pressure on the EU to implement this agreement, which was originally reached last summer, as soon as possible. However, EU lawmakers had previously delayed the approval process, following threats from U.S. President Donald Trump to take Greenland, and the U.S. Supreme Court’s overturning of Washington’s global tariff measures.

EU Economic Affairs Commissioner Valdis Dombrovskis stated during a speech to lawmakers on Thursday morning that this vote is “a very important milestone in our efforts to provide stability and predictability for European businesses, workers, and citizens in our trade relationship with the United States.”

Before approving the agreement on Thursday, European lawmakers proposed several amendments to address some concerns. One provision will ensure that the agreement does not take effect until the U.S. fulfills its commitments. Another provision stipulates that the agreement will expire in March 2028 unless both parties agree to extend it.

Lawmakers will consult with member states to finalize the text.

After the vote on Thursday, U.S. Ambassador to the EU Andrew Puzder praised the move, calling it a provision of “stability and predictability” for businesses. He urged the EU to quickly “complete this important milestone in U.S.-EU trade relations.”

The EU is still waiting for clarification from the U.S. on how to replace the 15% rate agreed upon during last summer’s initial agreement between Trump and European Commission President Ursula von der Leyen.

Recently, the U.S. has launched a new round of investigations into major trading partners, including the EU and China, aimed at replacing the reciprocal tariffs that were overturned by the Supreme Court. These investigations typically take months to complete and could lead to new tariffs on the EU, although Washington has indicated to Brussels that it will adhere to the commitments in the agreement.