Economy June 3, 2026 01:18 PM

U.S. Trade Representative Says Both Sides Committed to EU-US Trade Pact Amid Tariff Dispute

Greer reiterates compliance expectations after Washington unveils new tariffs tied to forced labour probe

By Derek Hwang

U.S. Trade Representative Jamieson Greer said the United States and the European Union remain committed to implementing their framework trade agreement, even as Washington's recent tariff measures tied to forced labour allegations have provoked criticism from trading partners. Greer acknowledged outstanding items in the EU Parliament's draft legislation and signalled expectations for further progress, while EU lawmakers pushed back at U.S. claims that the bloc has failed to curb goods made with forced labour.

U.S. Trade Representative Says Both Sides Committed to EU-US Trade Pact Amid Tariff Dispute

Key Points

  • Both the United States and the European Union are committed to complying with the framework trade agreement struck last July at Turnberry, according to U.S. Trade Representative Jamieson Greer.
  • The U.S. administration proposed tariffs of up to 12.5% on imports from 60 economies for alleged failures to curb trade in goods made with forced labour; the EU was hit with 10% tariffs and has pushed back.
  • Greer identified outstanding issues in the EU Parliament’s draft implementing legislation, including an expiration date, and said more progress is expected before full compliance.

PARIS, June 3 - The United States and the European Union remain committed to honoring the framework trade agreement they reached last year, U.S. Trade Representative Jamieson Greer said on Wednesday, even as a fresh wave of U.S. tariff actions has unsettled relations with several trading partners.

Greer reiterated that "Both sides are committed to compliance with the trade agreement," and added that "We think there is a lot of room for compliance on both sides," in remarks to France 24. The framework was agreed at U.S. President Donald Trump’s Turnberry golf resort in Scotland last July, and the EU is still advancing the deal through its ratification process.

U.S. threats of escalated tariffs have heightened pressure on the timetable. President Trump said he would impose "much higher" tariffs if the bloc did not carry out its commitments by July 4. These comments followed a U.S. administration proposal to impose tariffs of up to 12.5% on imports from 60 economies that the administration said had failed to stop trade in goods produced with forced labour.

The EU was specifically targeted with 10% tariffs in that action. Greer said the tariff announcement should not have been unexpected, noting the underlying investigation had been under way for months. He also indicated he did not expect the announcement to derail the deal in the European Parliament.

Members of the European Parliament have resisted Washington’s conclusions. Bernd Lange, who chairs the European Parliament’s trade committee, described any additional U.S. tariffs on EU goods as unacceptable and called U.S. assertions that the bloc is failing to curb trade in forced labour goods "utterly absurd".

Greer pointed to particular concerns Washington has with the EU Parliament’s draft implementing legislation, including the inclusion of an expiration date for the agreement. "There is still a long way to go for the European Union to comply with their deal. We’re happy with the progress that’s been made, but we do expect more," he said.

The exchange underscores persistent friction between the two sides as they attempt to move from a framework to ratified commitments, with tariff threats and legislative disagreements adding uncertainty to the path forward.


Summary

The U.S. trade chief said both sides remain committed to implementing their trade framework, while new U.S. tariff proposals tied to forced labour investigations have provoked pushback from EU legislators. Greer noted unresolved points in the EU Parliament's draft law and urged additional progress.

Risks

  • Tariff escalation - Continued threats or imposition of higher U.S. tariffs could increase costs for exporters and disrupt trade flows, affecting sectors reliant on cross-border supply chains such as manufacturing and export-oriented industries.
  • Legislative delay - Outstanding provisions in the EU Parliament’s proposed implementing law, including an expiration date, create uncertainty over ratification timing and compliance, which could weigh on market confidence in affected trade sectors.
  • Political pushback - Strong public rejection from EU lawmakers of U.S. forced-labour claims risks further diplomatic friction that could complicate negotiations and lead to retaliatory measures, impacting trade-sensitive markets.

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