THE EU COMPARISON
The US case against the European Union, one of its largest trading partners, has drawn particular scrutiny.
The USTR report criticised the EU’s Forced Labour Regulation, which starts to apply in December 2027.
It sets a higher bar for proof of violations than US rules and requires authorities to establish a substantiated concern before acting.
The European Commission said the tariffs were unjustified, reiterating its commitment to the trade deal sealed with Washington last year that capped the US tariff rate on most EU goods at 15 per cent.
International human rights group Walk Free said no G20 country is doing enough to combat forced labour relative to its wealth.
The US is among the top 10 countries with the largest number of people living in modern slavery, Walk Free said.
International Chamber of Commerce Deputy Secretary-General Andrew Wilson said the “arbitrary nature” of the tariffs was a cause for concern.
“It doesn’t make sense if the object of this is to enhance controls on modern slavery,” he said, adding that the planned EU measures, once implemented, would eventually be broader than US ones.
“The EU regime may ultimately have broader market reach because it covers imports, products sold in the EU, and exports from the EU.”
Sebastian Ruenz, ESG and supply chain specialist at law firm Taylor Wessing, agreed the EU’s framework was not as weak as Washington implied.
The EU ban covers products made with forced labour worldwide, regardless of the country of origin.
“It will be structurally far more comprehensive than the US law,” he said, noting that Germany, with the Supply Chain Due Diligence Act, and France, with a similar law, have already established national standards regarding forced labour.