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EU Reacts Strongly to Trump's Latest Tariff Threat Over Forced Labor
🇨🇭 Switzerland /Economy & Trade

EU Reacts Strongly to Trump's Latest Tariff Threat Over Forced Labor

From Neue Zürcher Zeitung · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

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  • The U.S. Trade Representative's Office is threatening new tariffs of at least 10% on goods from around 60 trading partners, including the EU, Britain, Canada, Mexico, and Taiwan.
  • The U.S. claims these countries are not doing enough to combat imports produced with forced labor, arguing it creates an unfair competitive advantage.
  • The EU has called the threat "unacceptable," pointing to its own recently adopted regulation against forced labor and stating that joint action was agreed upon in a previous trade deal.

The European Union has strongly rejected a new threat of tariffs from the United States, deeming it "unacceptable." The U.S. Trade Representative's Office, led by Jamieson Greer, is proposing tariffs of at least 10% on goods from approximately 60 trading partners. This move comes amid U.S. claims that these nations are not adequately addressing imports produced through forced labor, which the U.S. argues creates an unfair competitive disadvantage.

unacceptable

— EU CommissionDescribing the U.S. threat of new tariffs.

Greer contends that American companies are disadvantaged in the global market when other countries fail to take sufficient action against forced labor. He asserts that goods produced with forced labor are cheaper, giving countries that permit it an economic edge. The proposed tariffs would affect the EU, Britain, Canada, Mexico, and Taiwan, with Switzerland and other major partners like Japan, China, South Korea, and Brazil facing even higher rates of 12.5%.

The EU has countered the U.S. allegations, emphasizing its own commitment to combating forced labor. The European Parliament and member states adopted a regulation at the end of 2024 that prohibits products made with forced labor from entering the EU's internal market. Although this regulation is not yet in effect and is expected to be fully implemented by the end of 2027, the EU views it as a significant step.

American companies are at a disadvantage in the global market if other countries do not do enough to combat forced labor.

— Jamieson GreerU.S. Trade Representative explaining the rationale behind the proposed tariffs.

Furthermore, the EU reminded the U.S. of a prior trade agreement that stipulated joint efforts to combat forced labor. The European Commission considers the latest U.S. tariff threat unjustified, especially given the EU's ongoing legislative actions and agreed-upon cooperative framework. Bernd Lange, chair of the European Parliament's trade committee, also voiced opposition to tariffs exceeding those agreed upon previously.

Products made with forced labor are excluded from the internal market.

— EU CommissionDescribing the EU's regulation against forced labor.
DistantNews Editorial

Originally published by Neue Zürcher Zeitung in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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