EU Parliament Passes Long-Awaited Transatlantic Trade Truce

After months of debate about the deal’s future, the European Parliament came to a consensus about rolling back tariffs on American-made goods and fulfilling the terms of the so-called Turnberry Agreement struck by European Commission President Ursula von der Leyen and U.S. President Donald Trump nearly a year ago.

The transatlantic trade pact establishes a tariff ceiling on the U.S. side of 15 percent for most exports from the European Union, while tariffs on U.S. exports including agricultural products, produce and seafood are nixed entirely. Sealed with a handshake between the two leaders on July 25, 2025 at Trump’s golf club in Turnberry, Scotland, the deal drew consternation among European leaders who said that it would undercut domestic producers and farmers.

Their concern deepened with the invalidation of Trump’s International Emergency Economic Powers Act (IEEPA) tariffs in February, and its ratification was put on pause. At the time, Bernd Lange, Chair of the European Parliament’s committee on International Trade, said the Supreme Court decision fomented “questions and growing uncertainty” about whether the Turnberry Agreement was still viable, as its terms and the “legal basis on which it was built [had] changed.”

Subsequent negotiations between the U.S. and Europe—and amongst European leaders—took place throughout the spring. At a meeting of the G7 in early May, EU Parliament, the European Commission and individual European governments debated whether the deal provided enough protections for the 27-country trade bloc amid Trump’s continued tariff threats.

But several weeks later, the same parties convened again in France and decided to enact the deal in hopes of staving off further tariff action from Trump, who had intimated that he would push EU auto tariffs from the 15 percent baseline to 25 percent if the deal’s July 4 deadline passed without ratification. They reached a compromise, adding a new provision stipulating that Parliament may request a suspension of the agreement if the U.S. doesn’t lower duties on European steel and aluminum by the end of this year.

Tuesday’s vote of 440 in favor to 151 against the agreement should, in theory, allow the EU to meet the deal’s deadline and avoid new tariffs, as Parliament’s approval was the final stumbling block in the 11-month sojourn toward completion.

Von der Leyen welcomed the vote’s positive outcome, writing on X, “A deal is a deal – and the EU is delivering its part.”

“With this milestone, we are days away from fulfilling our commitment to remove tariffs on imports of US industrial goods,” she added. “With full implementation on both sides, our agreement will deliver even more benefits for citizens and businesses,” including transatlantic trade and investment opportunities.

Lange, who through his skepticism has spearheaded the push for better terms for Europe, was more sanguine in his assessment of the deal.

“Under considerable pressure, we secured important guardrails to keep European interests on track,” he wrote on X. “One thing is certain: we will stay on it and keep a close watch on the implementation.”

The Council of the EU, which represents the bloc’s member state governments, is slated to rubber stamp the agreement by June 26, after which it will be entered into the EU’s Official Journal and the law will take effect.