This decision removes one of the biggest obstacles to stabilising economic and trade cooperation across the Atlantic. However, the conditions imposed indicate that the EU–US partnership continues to balance cooperation with competition.
In July 2025, the US and the EU officially reached a bilateral trade agreement, averting the risk of escalating tensions in transatlantic trade relations after Washington announced a series of changes to its tariff policies. However, amid unexpected fluctuations in bilateral ties, EU lawmakers repeatedly postponed its approval.
As a result, the successful passage of the agreement was immediately welcomed by Washington.
US Ambassador to the EU Andrew Puzder described the milestone as opening up opportunities to boost growth and enhance the competitiveness of both economies. The American Chamber of Commerce (AmCham) to the EU noted that the EP’s decision has put trade and investment relations between the two sides back on track.
The EP’s approval helps remove a major barrier to strengthening economic cooperation, while easing tensions that have persisted for months between the US and the EU.
Under the agreement, the US will impose a 15% tariff on most EU goods, with certain sectors subject to separate rates. Some products, such as aircraft and related parts, will enjoy a zero-tariff regime. In return, the EU has agreed to eliminate most tariffs on imports from the US.
However, it is the EU’s accompanying conditions that warrant closer attention. The bloc has introduced a number of additional “safeguard” provisions.
Accordingly, the EU will only begin reducing tariffs if Washington fulfils its commitments; tariff preferences will automatically expire in March 2028; and the agreement may be suspended if the US raises tariffs above the agreed 15% ceiling, imposes any new tariffs on EU goods, or engages in discriminatory practices against EU businesses.
Bernd Lange, Chair of the EP’s Committee on International Trade, said these provisions were designed as a “safety valve” to help the bloc respond to unforeseen developments in the future. Analysts believe that the inclusion of such safeguards reflects the EU’s cautious approach.
Rather than entering into a long-term, binding commitment as in the past, the conditions attached to this agreement allow the EU to maintain balance and flexibility in the face of potential shifts in its relationship with Washington.
At the same time, the bloc has reaffirmed its goodwill and desire to sustain economic cooperation with the US — its leading trading partner. MEP Zeljana Zovko noted that despite certain disagreements, economic cooperation between the US and the EU has continued to grow in recent years.
This demonstrates that transatlantic trade relations remain robust. As such, rather than constraining ties, the EU should seek to strengthen its relationship with Washington.
For the EU, maintaining stable relations with the US is clearly a more advantageous option than allowing trade tensions to escalate.
Despite ongoing challenges stemming from unresolved differences, AmCham to the EU reported that in 2025, bilateral trade in goods reached a record high of 1.05 trillion USD. The two economies also maintain close ties, with the EU and the US remaining each other’s largest trading partners.
While the EU and the US are opting for dialogue to address their differences, experts believe this is only the beginning. The agreement is likely to face a long and challenging path before it can formally come into force.
