EU welcomes new 10% US tariff cap under forced labour investigation

Published Jul 24, 08:26 AM UTC

The United States announced new tariffs on dozens of trading partners, including the EU and UK, following a Section 301 investigation into forced labour practices. The EU will face a flat 10% tariff, which replaces a temporary 10% duty imposed after the US Supreme Court struck down higher reciprocal tariffs in February. The European Commission noted positively that the outcome aligns with commitments under the EU-US Turnberry agreement and provides momentum for further tariff exemptions and cooperation on economic security, critical raw materials, AI, and digital policy. The new tariffs are not stacked on existing duties, making 10% the maximum rate for most goods. Exemptions apply to certain EU products including cork, diamonds, aircraft parts, generic medicines, and active pharmaceutical ingredients. Separately, the Commission announced an €890 million fine against Google for breaching digital rules, which US Trade Representative Jamieson Greer warned could fuel transatlantic trade tensions.