EU Trade Friction with West Expected to Ease, European Union Advances Final Approval of Trade Agreement with US

The EU Restarts the Approval Process for the US Trade Agreement, Signaling the Final Approval of a Long-Delayed Deal.

The European Parliament’s Trade Committee will vote on the agreement this Thursday, followed by a full Parliament vote later this month or in April. Committee Chair and Negotiation Lead Bernd Lange revealed this plan to the media. “My compromise proposal has broad support, truly reflecting Europe’s stance.”

This decision was made by the lawmakers overseeing the process on Tuesday, despite recent US investigations into EU trade practices that could trigger additional tariffs. However, after adding an amendment, lawmakers decided to proceed—stipulating that the agreement will only take effect once the US fulfills certain conditions.

If the Parliament approves the agreement, the final text will be submitted for member states’ vote. This marks a potential easing of a growing friction point in transatlantic relations.

The EU has delayed approval of the deal several times in recent months, citing reasons such as US President Trump’s threats to seize Greenland and the uncertainty following the US Supreme Court’s ruling to revoke global tariffs. The US expressed dissatisfaction with the delays, raising the risk of further deterioration in bilateral trade relations.

Recently, US Trade Representative Jamieson Greer launched an investigation into the EU, aiming to replace the so-called “reciprocal tariffs” halted by the Supreme Court with new measures. Such investigations typically take months and could result in new tariffs on EU goods. The EU has yet to receive any assurances that the investigation’s findings will align with previous trade agreements.

The European Commission has warned that if the US breaches the agreement, the EU will respond firmly and proportionally.

The EU and US reached a preliminary trade deal in early July last year. Under the agreement, the EU agreed to lift tariffs on US industrial goods in exchange for the US capping EU tariffs on its products at 15%. The EU characterized this asymmetric deal as a pragmatic move to avoid a full-scale trade war with its largest trading partner and to secure US security commitments to Europe, especially Ukraine.

However, some European lawmakers criticize the deal. Opposition has grown as the US expanded the scope of its 50% tariffs on steel and aluminum to hundreds of additional products.

Despite this, several EU member states and center-right lawmakers continue to push for Parliament’s approval, believing it will help maintain stability in transatlantic relations and meet the business community’s urgent need for policy certainty.

Risk Warning and Disclaimer

Market risks are present; invest cautiously. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions herein are suitable for their particular circumstances. Investment involves risk, and responsibility rests with the individual investor.