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EU welcomes new 10% US tariff cap under forced labour investigation
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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.
Source report
The European Union will face a flat 10% tariff from Friday, following the conclusion of a US investigation into trade in products made with forced labour, a European Commission spokesperson confirmed.
Tariff Details
Washington announced on Thursday evening that it would impose tariffs on dozens of trading partners, including the EU and the UK, following a Section 301 investigation into unfair trading practices. The tariffs are structured as follows:
- 10% for countries that have introduced, or are planning to introduce, a forced labour ban
- 12.5% for all other countries
Unlike the previous regime, the new tariffs are not stacked on top of existing duties, meaning 10% is now the maximum rate for most goods.
EU Response
The EU "notes positively the fact that this outcome is in line with the US tariff commitments" agreed under the EU-US Turnberry agreement last year, the spokesperson said.
The spokesperson added that Thursday's announcement provides momentum to pursue further tariff exemptions and deepen cooperation in areas including:
- Economic security
- Critical raw materials
- Artificial intelligence
- Digital policy
Broader Context
Also on Thursday, the European Commission announced an €890 million fine against Google for breaching the bloc's digital rules. US Trade Representative Jamieson Greer warned that the decision risked fuelling transatlantic trade tensions by attempting "to target the most competitive US companies".
The new duties are widely seen as an attempt to reimpose the so-called "reciprocal" tariffs that were struck down by the US Supreme Court in February, including a 15% levy on most EU exports. The new tariffs replace a temporary 10% duty introduced by the US president following the court ruling.
Exemptions
Brussels said the new regime includes tariff exemptions for certain EU products, including:
- Cork and diamonds
- Aircraft and aircraft parts
- Generic medicines
- Active pharmaceutical ingredients
The Commission added that it would continue engaging with Washington on other ongoing Section 301 investigations – such as what the US claims is the EU's excess capacity and Germany's "persistent underpayment" for pharmaceuticals.
EXCLUSIVE: Brussels to ask Washington for tariff exemptions on key exports. The European Commission has drawn up a list of hundreds of products – from Roquefort… (2 minutes)
Source
EuractivWestern
Part of this Story
EU Accepts US Forced Labor Tariffs if Trump Respects 15% Cap