The European Commission on Wednesday rejected proposed U.S. tariffs that were justified by Washington on the grounds the bloc had not adequately prohibited imports connected to forced labour.
In a formal response, the Commission said it had taken note of the initial conclusions and suggested measures from U.S. Section 301 inquiries into trade in goods produced with forced labour. However, an EU spokesperson indicated the bloc regards tariffs based on those findings as unjustified.
The Commission reiterated that it remains on schedule to carry out commitments set out in the trade agreement reached with Washington last year. The spokesperson said the EU expects to complete the implementation of the Joint Statement tariff commitments by the end of June.
Additionally, the Commission said it expects the United States to fully respect the provisions of the trade deal.
Context and developments
Officials in Brussels framed the response as a formal rejection of the tariff proposal, while acknowledging the existence of the U.S. Section 301 preliminary findings and proposed actions. The Commission's statement emphasized the EU's position that duties imposed on the basis of those findings would not be justified.
The EU also made clear that it is actively implementing the tariff-related elements of last year's agreement with Washington and has set a public timeline for completion by the end of June. The Commission's expectation that the U.S. will adhere to the trade deal was reiterated alongside that timetable.
What remains open
- The U.S. Section 301 investigations remain at the stage of preliminary findings and proposed actions.
- The Commission has stated its view that tariffs tied to those findings are unjustified, while also committing to complete implementation of agreed tariff commitments by the end of June.
- The statement calls for the United States to respect the terms of the trade deal, but does not detail next steps should the U.S. pursue the proposed tariffs.