On 24 July President Donald Trump announced that the United States will impose additional duties on imports from 60 countries, covering every member of the European Union, on the basis of forced‑labour allegations. The United States Trade Representative’s office said the United States is the only nation that has both adopted and enforced a ban on imports produced with forced labour.

Scope of the measures

U.S. customs officials will apply the duties to a range of products, including textiles, electronics and agricultural items, where they determine that forced‑labour involvement exists in the supply chain. The announcement cited Poland’s reduced purchases of American tobacco and its increased buying of tobacco from Malawi, which the United States alleges involves forced labour, as an example of the type of trade it seeks to address.

Projections for 2025 suggest that U.S. tobacco sales to Poland will represent a very small share of both overall U.S.–Poland trade and total U.S. exports, indicating that the tariff’s impact on that sector will be limited in volume but potentially significant in principle.

EU response and broader concerns

The European Commission has responded that the tariffs are consistent with the United States’ tariff commitments outlined in the EU‑U.S. joint statement. A senior EU trade adviser warned that unilateral U.S. decisions on foreign regulations undermine the principle of equal footing in international trade. Analysts have described the forced‑labour cases as a stalking horse for a wider U.S. extraterritorial regulatory push.

In parallel, about two dozen U.S. lawmakers have urged President Trump to launch a Section 301 investigation of the EU Digital Markets Act, accusing the EU of robbing American technology firms. President Trump posted on Truth Social that he would initiate an immediate Section 301 probe and suggested further tariffs after the European Commission fined Google €890 million for alleged breaches of the Digital Markets Act.

U.S. critics argue that the forced‑labour rationale could later be applied to challenge the EU’s Carbon Border Adjustment Mechanism, extending the impact of the tariffs beyond the initially named sectors.

Legal and regulatory backdrop

The move echoes earlier U.S. extraterritorial actions such as the Helms‑Burton Act dispute of the 1990s, when the United States extended its Cuba embargo to foreign companies. After three presidents blocked enforcement, President Trump revived the lawsuits, and in May 2024 the Supreme Court allowed Cuban‑related claims against European firms to proceed.

A recent Supreme Court ruling that the president may remove Federal Trade Commission commissioners has raised doubts about the independence of the EU‑U.S. Data Privacy Framework, prompting European privacy organisations to file lawsuits seeking to invalidate the framework.

Potential impact on consumers and businesses

European workers could face higher consumer prices if importers pass the tariff costs onto them. Small and medium‑sized enterprises that rely on transatlantic supply chains may see tighter profit margins as a result of the duties. Trade unions across the EU have expressed concern that the U.S. approach shifts compliance costs onto European businesses and consumers rather than directly addressing forced‑labour practices.

The European Trade Union Confederation has called for a coordinated European response that safeguards workers’ rights without compromising market access. A Brussels‑based consumer watchdog analyst warned that when tariffs increase, the most vulnerable consumers bear the cost.

EU options and timeline

The EU is evaluating options such as filing a complaint with the World Trade Organization or imposing reciprocal duties on U.S. goods. The tariffs are scheduled to take effect later in the current year, setting the stage for a potential escalation in transatlantic trade tensions.