US to impose new trade restrictions on EU over forced labor concerns
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The United States is preparing to impose new trade restrictions on the European Union over products allegedly linked to forced labor, according to Euronews. Brussels argues the measures would violate the trade agreement signed in July 2025, which caps tariffs at 15%. The current tariff regime expires on July 24 unless Congress extends it.
US Allegations and EU Response
Washington announced the new tariffs in early June, citing insufficient EU measures against goods produced with forced labor. US Trade Representative Jamieson Greer said steps would be taken soon. The European Commission called the allegations unfounded and stated its priority is maintaining stability for European companies and upholding the Ternberry agreement reached last summer.
Tariff Cap at Risk
The existing US tariff regime expires on July 24 unless Congress acts. The US Department of Commerce is conducting a Section 301 investigation into forced labor in global supply chains. For the EU, the issue is sensitive: average tariff burden on European goods has already approached the 15% cap set by the July 2025 agreement between President Donald Trump and European Commission President Ursula von der Leyen.
EU Strategy and Next Steps
Brussels emphasizes that EU law already contains strict rules against forced labor-linked products. Despite disagreeing with the US approach, the EU is betting on negotiations to preserve trade conditions. A European Commission spokesperson said the EU has clearly communicated its position to US partners.
What's Next
The US Congress faces a July 24 deadline to extend the current tariff regime. It remains unclear whether Washington will impose new duties before or after that date, and whether the EU will retaliate if the 15% cap is breached.
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US to impose new trade restrictions on EU over forced labor concerns
