Europe Relieved by U.S. Forced Labor Tariffs, Saying They Align With Existing Trade Deals

While the U.S. administration under Donald Trump has imposed new tariffs replacing existing reciprocal tariffs under the pretext of combating forced labor, the mood in Europe is one of tentative relief.

As the European Union (EU) had imposed a massive fine amounting to 1.5 trillion KRW on U.S. tech giant Google the previous day for violating digital competition laws, anxieties had run high within the EU that the United States might immediately retaliate through tariff hikes or similar measures.

However, after confirming that the tariff rates do not deviate from the trade agreement concluded last year, European officials breathed a sigh of relief.

Olof Gill, a spokesperson for the European Commission, stated on the 24th local time that under the new tariff system enacted by the United States, a 10% tariff rate applies to the EU, adding, "This is consistent with the U.S. commitments in the existing trade agreement signed by both sides last July, and we view it positively."

At that time, the EU and the United States signed a trade pact in Turnberry, Scotland, agreeing to levy a 15% tariff on most products exported from the EU to the United States.

Conversely, they had agreed not to impose tariffs on American goods imported into the 27 EU member states.

Spokesperson Gill also explained that exemptions from additional tariffs would be reinstated for specific EU products such as diamonds and cork, while aircraft, aircraft parts, and generic pharmaceuticals were also included in the duty-free categories.

These measures will foster a constructive atmosphere for bilateral negotiations across various fields, ranging from strategic raw materials to artificial intelligence (AI), Gill added.

Britain, which like the EU was subjected to a 10% tariff, also maintains that there are no negative changes for British businesses.

A British government spokesperson said, "This announcement brings no negative changes to the tariff rates faced by British businesses," and added, "Our (trade) agreement with the United States remains intact."

The spokesperson further emphasized, "We deal sternly with forced labor to ensure that British companies are not complicit in global supply chains," and noted, "The United States recognized these efforts by the UK, which is why there were no additional tariffs imposed on Britain in this announcement."

The Swiss government, which was hit with a 12.5% forced labor tariff, stated that it "denies the allegations related to the forced labor investigation," while also expressing the stance that the U.S. measure does not deviate from the existing trade agreement.

Switzerland was hit with a steep 39% tariff by the United States in August of last year, but in November of the same year, it agreed to invest 200 billion USD (293 trillion KRW) in the United States in exchange for lowering the tariff rate to 15%.
※ Please note: This article was translated by AI and may contain errors.