Key facts
- The EU is preparing to accept new US tariffs on goods.
- The tariffs are expected to be imposed due to concerns over forced labor.
- The EU's acceptance is contingent on tariffs not exceeding a 15% cap.
- This cap was agreed upon in a July 2025 EU-US trade deal.
- The current US tariff regime expires on Friday.
The European Union is preparing to accept new tariffs that the United States is expected to impose in the coming days, provided these duties do not exceed the 15% cap agreed upon in the July 2025 Turnberry agreement. The White House indicated in early June its intention to impose fresh duties on global trading partners, citing insufficient efforts to curb trade in goods produced using forced labor as detrimental to US commercial interests.
The current US tariff regime is set to expire on Friday. US Trade Representative Jamieson Greer confirmed on Tuesday that the implementation of forced labor duties was imminent. European officials are closely monitoring the tariff levels, as the EU-US trade agreement, signed in July 2025 by US President Donald Trump and European Commission President Ursula von der Leyen, caps US duties on EU goods at 15 percent.
An EU senior official stated that while the EU disagrees with the findings on forced labor, the primary objective is to ensure the agreement is respected and that companies benefit from stability and predictability. The Trump administration had previously imposed 10 percent duties on global trading partners in February, following a US Supreme Court ruling that declared its 2025 tariffs illegal. These, combined with pre-existing Most-Favoured-Nation duties, bring the EU's average duties close to the 15 percent ceiling.
The legal basis for the current US tariff regime does not permit its continuation beyond 150 days, approximately July 24, without Congressional approval, which is considered unlikely before the US midterm elections. As part of its strategy to establish a new tariff framework, the US Trade Department initiated an investigation under Section 301 of the Trade Act of 1974 concerning forced labor in global supply chains, with conclusions expected shortly. Greer indicated that action is anticipated soon, though specific timelines were not provided pending briefings to Congress and stakeholders.
Earlier in June, the Commission defended its own regulations against products made with forced labor, with Olof Gill, the Commission's deputy chief spokesperson, stating that the EU considers tariffs imposed on such grounds to be unjustified. However, the Commission now appears to prioritize adherence to the Turnberry agreement.