The U.S. just slapped a 10% tariff on EU goods — citing forced labor concerns — even though the EU’s own rules won’t take effect until 2027. Surprisingly, this move stays within last year’s trade truce, which capped EU tariffs at 15%. The EU is cautiously accepting it but watching closely as other investigations into industrial overcapacity and drug pricing loom. Some EU officials are unhappy, arguing their labor laws are already strong — with paid vacations and decent conditions — making the U.S. move feel like a betrayal of the spirit of the deal. The situation remains tense as both sides brace for more trade friction.
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