EU to accept US forced labour tariffs if Trump respects 15% cap

The European Commission has indicated it will accept new US tariffs on goods allegedly produced using forced labour, as long as Washington honours its commitment to cap duties on EU exports at 15%.

Background

The development comes as the Trump administration works to reinstate so-called "reciprocal" duties that were struck down by the US Supreme Court in February. These included a 15% levy on most EU exports to the US. A temporary 10% duty introduced by the US president following the court ruling is scheduled to expire on Friday.

US Trade Investigation

In June, the US Trade Representative (USTR) proposed a 10% tariff on EU products allegedly benefiting from forced labour, following a Section 301 investigation into unfair trade practices. These levies, which could be imposed at any time, are widely expected to replace the temporary duties.

EU Position

A senior European Commission official stated on Monday:

"Whatever way it is constituted, whatever is the legal tool, whatever it looks like, it should be below the maximum 15% that has [been] agreed."

The official added:

"To some extent… we are not too bothered what is the legal mechanism in the US system to achieve that. As long as it's achieved, as long as it's stable and predictable, as long as we can trust that our companies benefit from what was set out in the agreement."

Rejection of Forced Labour Allegations

The official stressed that Brussels has made it "very clear" to Washington that it rejects the allegations regarding the EU's use of forced labour:

"We have good rules in place on forced labour. We enforce our rules on forced labour. So we do not agree with the findings there. But again, the main objective is to make sure that the agreement is respected."

Ongoing US Trade Probes

The Commission has not yet been informed of when other ongoing US trade investigations will be completed, including:

• Section 301 probes into the EU's "excess capacity"
• An investigation into Germany's "persistent underpayment" for pharmaceuticals

However, the official confirmed that Brussels has received "assurances" from Washington that any duties would not exceed the 15% ceiling agreed under the July 2025 Turnberry deal.

Tariff Exemptions Sought

The remarks come as Brussels seeks tariff exemptions for certain EU exports to the US, including:

• Cheese
• Pasta
• Olive oil
• Alcoholic products

The official said the EU's list, shared with Washington, also includes goods that would benefit the US economy, such as machinery used for liquefied natural gas extraction and transport.

"You actually see in a number of these sectors a significant alignment of interest," the official said.