EU will accept US forced labor tariffs if Trump respects 15% cap

Published Jul 20, 02:27 PM UTC

The European Commission has signaled it will accept new US tariffs on EU goods allegedly produced using forced labor, provided Washington honors a pledge to cap duties on EU exports at 15%. This comes as the Trump administration scrambles to reimpose 'reciprocal' duties struck down by the US Supreme Court in February, with a temporary 10% duty set to expire on Friday. The US Trade Representative proposed a 10% tariff on EU products following a Section 301 probe into unfair trade practices. A senior EU official stated that Brussels is not concerned about the legal mechanism as long as the 15% cap is respected and stable. However, the EU rejects the forced labor allegations, insisting it has robust rules and enforcement. Brussels is also seeking tariff exemptions for EU exports like cheese, pasta, olive oil, and LNG machinery, citing mutual economic benefits.