The European Parliament has approved a trade agreement between the European Union and the United States aimed at reducing trade tensions and providing greater certainty for businesses on both sides of the Atlantic.

Under the agreement, the EU will remove tariffs on a range of US industrial products, while the US will maintain a 15% tariff on most EU exports. The deal was approved with 440 votes in favor, 151 against, and 50 abstentions, marking a significant step toward implementing the broader EU-US trade framework.

The agreement also addresses ongoing concerns surrounding steel and aluminum trade. EU lawmakers included provisions that would allow the European Commission to suspend trade concessions if US tariff measures on steel and aluminum products exceed agreed levels or remain unresolved.

Supporters of the deal believe it will help prevent a new tariff dispute between the two economies, improve market predictability, and provide stability for industries affected by trade uncertainty. European business groups have welcomed the approval, citing the importance of clear trade rules for long-term planning and investment.

The agreement is expected to remain in force through 2029, with review mechanisms and safeguard provisions included to ensure compliance by both sides. The move comes as policymakers continue to address challenges related to global trade, industrial competitiveness, and steel market dynamics.

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