European Parliament gives final approval to Trump tariff deal

The European Parliament has given its final approval to implement last July's tariff agreement with Donald Trump, moving the deal a step closer to formal adoption by EU leaders. The vote in Brussels came just days before a US deadline threat to raise tariffs if the agreement was not sanctioned by 4 July. Lawmakers backed the text with two main provisos, including a sunset clause that would make the deal expire on 31 December 2029 unless renewed.

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Under the agreement, the US applies 15% tariffs on most EU exports, while the EU has cut import duties on some US goods, some agricultural products and a wide range of seafood to 0%. The text also sets out conditions for tariff reductions on products containing some steel and aluminium, an area that has been a major source of friction between Brussels and Washington. The European Commission would be able to suspend tariff preferences for US goods by 31 December 2026 if the US continues to apply tariffs on steel derivatives, and it must report to the parliament by 1 December.

The vote comes nearly a year after the original deal was agreed at Donald Trump's Turnberry golf course in Scotland last July. Since then, relations have been strained by US tariffs on products with steel or aluminium content, which Brussels has repeatedly protested against. MEPs had already suspended the ratification process twice this year in the parliament's international trade committee, first over Trump's threat to impose higher tariffs in January and later over his threat to take over Greenland.

The decision matters because it affects trade flows between two of the world's largest economic blocs and sets the terms for a wide range of goods, including industrial products, agriculture and seafood. It also gives the European Union a formal mechanism to respond if the US keeps tariffs on steel derivatives in place. The agreement is being handled through the EU's legislative process, which has taken longer than the US side's immediate implementation last summer and has drawn criticism from the Trump administration.

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The parliament also wants a further assessment of the impact of the 0% tariffs on US goods for agriculture and small- to medium-sized businesses by 30 June 2029, six months after Trump's presidency is due to end. That requirement suggests lawmakers are still weighing the longer-term effects of the deal on EU industry and market access. The arrangement therefore remains politically sensitive even after the latest vote, particularly because it combines tariff relief with safeguards that could be triggered later.

What happens next is a formal adoption by EU leaders when they meet in Brussels on Thursday. It remains unclear whether the US will maintain the current tariff structure on steel-related products, and that will determine whether the Commission moves toward suspending tariff preferences later this year. The key dates to watch are the 1 December report, the 31 December 2026 review point and any further action before the 2029 sunset clause.

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