EU lawmakers give approval to U.S. trade deal

The European Parliament on June 16 approved the long-delayed trade deal with the United States, giving the transatlantic pact its biggest political boost so far and clearing the main legislative hurdle on the European side.

Lawmakers backed the agreement by 440 votes to 151, with 50 abstentions, according to reporting from the Wall Street Journal and Financial Times. The deal now moves to EU member states for final approval in the Council of the EU before it can take effect.

A deal years in the making

The framework was negotiated last year between U.S. President Donald Trump and European Commission President Ursula von der Leyen, but it then spent months stuck in the political process. Reporting on June 16 said the Parliament vote was the latest step in a deal that had been delayed and debated for much of the year.

The timing is sensitive because the agreement has been tied in reporting to a July 4 deadline. Trump had threatened higher tariffs on EU car exports if the arrangement was not ratified in time, adding pressure on lawmakers to act.

What the agreement covers

The deal lowers EU tariffs on most U.S. industrial goods and some agricultural products to zero. In return, U.S. tariffs on European goods remain higher, leaving the arrangement politically uneven even as it creates a more predictable baseline for trade.

That structure has made the pact important for companies that rely on transatlantic supply chains, but it has also left room for criticism from lawmakers and business groups who want more clarity on how long the terms will last and how they will be enforced.

What still needs to happen

The parliamentary vote is not the final step. EU member states still need to give the Council seal of approval, and reporting said that formal signoff was expected next.

Any objections from member states could still slow implementation, even though the Parliament has now removed the main legislative obstacle on the European side. The Commission will also need to manage the next phase of implementation with its U.S. counterparts.

Metals remain a flashpoint

One unresolved issue is the treatment of steel and aluminum derivatives. Reporting says tariff questions remain around U.S. duties on those products, leaving one of the most sensitive trade areas still unsettled.

The European Commission has warned it could suspend tariff concessions if the U.S. exceeds the agreed tariff levels on metals. That keeps the deal politically fragile even after the Parliament vote.

Why the vote matters

For Brussels, the approval gives the Commission more room to present the deal as a working framework rather than an unfinished proposal. It also signals that enough lawmakers were willing to accept the pact despite its compromises.

The agreement includes a sunset clause that would keep it in place until the end of 2029 unless extended. That means the current terms can provide long-term predictability only if both sides decide to keep the arrangement alive.

Business groups in Europe have argued that even a partial deal is preferable to renewed tariff escalation, because it gives exporters and importers at least some certainty. At the same time, the higher U.S. tariffs on European goods mean the agreement remains politically sensitive inside the EU.

Next steps

The immediate question is whether EU member states move quickly to endorse the deal in the Council. If they do, the agreement could move closer to implementation before the tariff deadline cited in reporting.

The other question is whether the U.S. and the European Commission can narrow the remaining metals dispute before the end of the year. For now, the Parliament vote has cleared the biggest obstacle, but the final shape of the pact is still not fully settled.