EU Parliament Greenlights Trans-Atlantic Trade Pact

The agreement marks a fragile reset for trans-Atlantic commerce, arriving after months of legislative stalling caused by diplomatic spats over Greenland and U.S. judicial rulings on global tariffs. While the pact secures a path forward, it includes a sunset clause terminating the arrangement in 2029 unless both parties agree to an extension.

Brussels has maintained a defensive posture, with the European Commission reserving the right to suspend tariff concessions if the U.S. maintains duties exceeding 15% on steel and aluminum derivatives beyond year-end. Bernd Lange, chair of the European Parliament’s trade committee, emphasized that the bloc will deploy its full regulatory toolkit if Washington breaches the spirit or letter of the Turnberry terms.

Industry leaders in Germany offered a measured reception. Wolfgang Niedermark, a board member at the BDI federation, described the vote as a necessary step for restoring planning certainty, though he noted that existing tariffs remain a significant drag on the European economy. The measure now heads to EU member states for final ratification.