U.S. Threatens 10% Tariffs on EU Goods Over Forced Labour Rules, Broadening Global Enforcement Push

On June 2, 2026, the U.S. government unveiled a tariff plan aimed squarely at imports linked to forced labour, proposing additional duties of 10 to 12.5 percent on goods from roughly 60 economies — including the European Union and the United Kingdom. The EU would face a 10 percent surcharge, the UK a 12.5 percent one. A report from the Office of the U.S. Trade Representative (USTR) argues that many nations lack effective prohibitions on importing products made with forced labour. The proposal remains in a consultation phase and is not yet in force. The International Labour Organization identifies the Asia-Pacific region as having the highest prevalence of forced labour, with serious problems also in Southeast Asia, South Asia and the Gulf states.

The tariff threat adds pressure to a continent already tightening its own enforcement. In the Netherlands, enforcement of the DBA Act in 2025 drove roughly 20,000 self-employed workers (ZZP) out of the construction industry. Industry associations warn that companies such as the Van Gelder Groep, which employs 2,000 people, face social-security back-payment demands running into millions of euros. Germany, for its part, strengthened its legal arsenal on January 1, 2026, when a modernised law against illegal employment took effect, giving customs authorities expanded powers to audit digital platforms and subcontractors. By December 2, 2026, Berlin must also transpose the EU Platform Work Directive into national law, creating a rebuttable presumption of employment for many roles currently classified as self-employed.

The same enforcement pressure is building in the UK, where gaps in health and safety documentation can leave businesses exposed to fines and legal action. Many employers discover too late that their risk assessments or training records don't meet legal standards. A free Health & Safety Toolkit provides ready-to-use risk assessments, checklists, and toolbox talks that align with UK regulations such as the Health and Safety at Work Act 1974. Download the free Health & Safety Toolkit

Investigations on construction sites in Milan lay bare the scale of the problem. Data from 2025 reveals that more than 67 percent of 547 companies inspected in the region showed irregularities. Authorities recorded a 437 percent jump in illegal outsourcing practices, affecting nearly 2,900 workers. Intermediaries reportedly withhold up to one-third of monthly wages. A contrasting example comes from Germany’s construction sector: on May 6, 2026, the procurement and contract code for construction works (VOB) marked its 100th anniversary. Representatives of the Central Association of the German Construction Industry (ZDB) called the VOB an indispensable tool against corruption and a foundation for fair tendering rules.

Ethical recruitment to address skill shortages is also gaining traction. Since 2022, the German state of North Rhine-Westphalia has run the “WE-Fair” alliance, in cooperation with the Federal Ministry for Economic Cooperation and Development (BMZ). The initiative places young people from Africa into German training programmes, applying transparent and fair recruitment standards. So far, 65 young people have been placed.

The economic fallout from labor exploitation and tax crime is staggering. Germany loses an estimated €100 billion annually to tax evasion, and another €100 billion moves through the economy in money laundering. The consequences hit individual firms as well: in Lower Austria, an assembly company filed for insolvency after a lawsuit over unpaid wages for 16 employees worth nearly €350,000. Workplace safety remains a flashpoint, too. On June 3, 2026, a Slovenian worker was seriously injured on a demolition site in Styria, requiring 25 emergency responders to manage the incident.

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