Trump Tariffs: EU Pulls Ahead of UK Thanks to Forced Labor Law

Herz — Business Desk · 24 July 2026 at 16:25 · 30s summary · 3 min read

What we know

On July 24, 2026, the Trump administration justified its new round of tariffs against dozens of trading partners by citing forced labor in supply chains. According to the BBC, this justification also serves as a legal shield against potential challenges in Congress or U.S. courts.

For the UK, the nominal rate remains at 10%, but it applies on top of other tariffs on certain products—particularly shoes and textiles. For the EU, the 10% rate is all-inclusive and does not stack with additional tariffs.

Why the EU gains better U.S. market access

The European advantage stems from a law the EU adopted banning products made with forced labor. This is precisely the criterion Washington used to calibrate its tariff rates.

The UK has not yet adopted equivalent legislation. In October 2025, the British government did declare its intention to strongly oppose state-imposed forced labor, but indicated it was examining the best way to reflect this position, citing operational and legal complexities.

strongly oppose state-imposed forced labor

— British government, October 2025

The UK has nonetheless negotiated partial agreements with Washington in several sectors: pharmaceuticals, steel, aluminum, automobiles, and whisky—the latter notably with the support of King Charles.

William Bain, a trade expert at the British Chambers of Commerce—a national network of 52 regional chambers across the UK—confirms that EU exporters enjoy a competitive advantage in certain sectors of the U.S. market compared to their British counterparts.

The numbers