EU Rejects US Forced Labor Claims Amid New Tariff Shock

European Union foreign policy chief Kaja Kallas dismissed Friday the rationale behind newly imposed U.S. tariffs on the bloc, firmly rejecting Washington’s claims of deficient forced labor controls.

Speaking at ASEAN gatherings in Manila, the diplomat cited the continent's existing employment regulations to argue the American allegations lacked merit.

"If you compare our labor laws to the ones of the United States, I mean, we have paid vacations, we have very good labor conditions for our employees, so it's not really grounded," Kallas stated to Reuters.

Trade Agreement Disrupted

The Trump administration recently levied duties of 10 percent and 12.5 percent on 60 international trading partners.

These penalties explicitly cite lax enforcement against forced labor and coincide precisely with the expiration of a separate, temporary 10 percent global tariff.

The action marks the latest executive maneuver to establish near-global tariffs.

It follows a U.S. Supreme Court decision earlier this year that invalidated previous emergency reciprocal duties designed to shrink the national trade deficit.

Brussels viewed the latest financial penalties as an unexpected disruption of a transatlantic commercial pact finalized last year.

"We had a deal with America, and we have kept to that deal, that side of the deal," Kallas remarked.

The bloc now intends to request a formal explanation from Washington regarding the sudden policy shift.

Broadening Russian Sanctions

Beyond the immediate transatlantic trade friction, the EU simultaneously advanced its 21st package of sanctions targeting Moscow.

Approved by the Council of the EU on Thursday, these measures strictly limit Russian banking operations and cryptocurrency networks.

The explicit objective is to cut off external capital pipelines funding the ongoing war in Ukraine.

"We also see that due to the sanctions, they can't raise capital outside," the foreign policy chief noted.

European officials consider the financial blockade an instrumental component of a wider strategy intended to compel Moscow into substantive diplomatic negotiations with Kyiv.