EU Parliament advances US trade deal with safeguards; vote 417-154
Tariff elimination on US industrial goods set to boost exporters, deal faces final approval in April-May
The European Parliament voted on Thursday to advance legislation implementing a landmark trade agreement with the United States that would eliminate tariffs on most American industrial goods, delivering a significant victory for US exporters seeking expanded access to the world's largest single market.
Lawmakers in Strasbourg approved the measure by 417 votes to 154, with 71 abstentions, following a 29-9 endorsement from the parliament's International Trade Committee earlier this month. The so-called Turnberry Deal, originally agreed in July 2025, represents the most substantial transatlantic trade liberalization in years.
"This is a massive step forward for transatlantic trade relations," said analysts at Investing.com, noting the legislation now moves to negotiations with EU member state governments before a definitive approval vote expected in April or May.
The agreement would see the European Union eliminate its customs duties on virtually all American industrial products, a move that economists at S&P estimate could boost EU GDP by 0.1% while providing substantially improved market access for US manufacturers. In return, the United States has committed to capping tariffs on most EU imports at 15%, while maintaining a 50% tariff level on steel and aluminum.
US industrial goods exporters stand to be the primary beneficiaries, with manufacturers of machinery, chemicals, automotive components, and technology products positioned to gain from tariff-free access to the 27-nation bloc. The agreement also extends duty-free treatment to US lobsters, a sector that has faced significant barriers in European markets.
However, the legislation includes substantial safeguards that reflect ongoing European concerns about US trade policy. The deal features a sunset clause in March 2028, a suspension mechanism if Washington threatens European territory, and an automatic snapback provision if the US fails to reduce tariffs on more than 400 steel-related product categories within six months.
According to the European Parliament, these conditions were negotiated to provide "much-needed stability and predictability for European businesses" amid broader trade tensions and US threats of new global tariffs.
The vote comes after months of uncertainty, with the ratification process previously delayed by US tariff threats and concerns over the deal's balance. The aerospace sector in the EU has been explicitly exempt from new US tariffs under the agreement, addressing a key European concern.
Market analysts have identified the trade deal as a potential catalyst for US equities, particularly for multinational manufacturers with significant European exposure. The elimination of tariffs on industrial goods represents one of the most significant trade liberalization measures since the creation of the World Trade Organization, potentially reshaping competitive dynamics across multiple sectors.
The final legislative text still requires approval from EU member state governments, with the definitive vote anticipated in late April or early May. Until then, the agreement remains subject to amendment, particularly regarding the timing and scope of the sunset provisions.
US officials have warned that failure to implement the agreement without substantial amendments could result in the EU losing favorable access to US liquefied natural gas shipments, adding pressure on European negotiators to finalize the deal swiftly.