Key facts
- The U.S. has imposed new tariffs on EU goods, set at 10 percent.
- These tariffs are reportedly in response to the EU's alleged failure to ban imports made with forced labor.
- The EU noted that the U.S. largely adhered to the terms of a transatlantic trade truce, capping tariffs at 15 percent.
- The EU's foreign affairs chief expressed that the agreement was not kept, calling it a negative surprise.
- Further U.S. investigations into European industrial overcapacity and pharmaceutical pricing are ongoing.
The European Union expressed cautious optimism regarding new U.S. tariffs, indicating they were manageable as President Donald Trump largely adhered to the terms of a transatlantic trade truce. Washington imposed a 10 percent duty on EU goods, a move justified by the U.S. Trade Representative as a response to the EU's alleged failure to ban imports made with forced labor.
While the EU noted positively that the tariffs stayed within the agreed-upon 15 percent cap established by last year's trade deal, EU's foreign affairs chief Kaja Kallas voiced disappointment, stating the agreement was not kept and questioning the U.S. reasoning. The EU's own forced labor regulation is not set to take effect until December 2027.
Brussels remains aware that further U.S. investigations into European industrial overcapacity and pharmaceutical pricing could lead to cumulative duties exceeding the 15 percent cap. These probes are being conducted under Section 301 of the U.S. Trade Act of 1974, a provision used to address unfair trade practices.