European Parliament gives conditional approval to EU-US trade deal

But on Thursday the parliament voted that it will only accept zero tariffs on US goods if hundreds of European goods made with steel and aluminium are excluded from that 50% tariff.

A “sunset clause” will see the agreement end by 31 March 2028.

“At this stage, we have received reassurances from the US that they intend to honour the deal,” European economy commissioner Valdis Dombrovskis said after the vote.

“While we will continue our efforts to maintain constructive relationships and avoid volatility, we will not turn a blind eye to any risks to our interests.”

EU trade commissioner Maros Sefcovic described the vote as a “crucial step”.

The framework agreement was made during a meeting between European Commission President Ursula von der Leyen and Trump at the president’s Turnberry golf course in Scotland last July.

Von der Leyen hailed it as a “huge deal,” while Trump said it was a “good deal for everybody”.

Trump said at the time that the EU would boost its investment in the US by $600bn (£446bn) – including purchases of American military equipment – and spend $750bn on energy.

Von der Leyen said increased purchases of American liquified natural gas, oil and nuclear fuels would help reduce Europe’s reliance on Russian energy.

The US and the European Union are each others’ largest trading partners.

More than €1.6tn ($1.9tn, £1.4tn) in goods and services were exchanged in 2024, according to European figures – nearly a third of all global trade.

Trade in goods alone totalled about $976bn in 2024. The US imported roughly $606bn in goods from the EU and exported around $370bn.

Trump has wielded tariffs against many US trading partners in what he describes as an effort to reduce the US trade deficit and reshape the global trading system.

Since Trump’s announcement of global tariffs on “Liberation Day” last year, the EU has sought to diversify its trade relationships.

The bloc signed a sweeping trade deal with Australia earlier this week, and in January announced a landmark trade deal with India after nearly two decades of on-off talks.