Key facts
- U.S. will uphold tariff caps in trade deals with the EU, Japan, and other countries.
- Planned U.S. tariffs over forced labor provide the legal basis for respecting these caps.
- Washington has trade deals with Brussels and Tokyo limiting U.S. tariffs on most EU or Japanese imports to a maximum of 15%.
- The U.S. unveiled new tariffs on 60 countries after asserting they failed to curb trade in goods made with forced labor.
- Findings from a second Section 301 probe into excess manufacturing capacity in 16 major U.S. trading partners will be released soon.
U.S. Trade Representative Jamieson Greer stated that the United States will respect tariff caps in trade deals with the European Union, Japan, and other countries. He indicated that planned U.S. tariffs related to forced labor provide the legal basis for upholding these agreements. Washington has previously agreed with Brussels and Tokyo to limit U.S. tariffs on most EU or Japanese imports to a maximum of 15%. Greer's office recently announced new tariffs on 60 countries following an investigation into trade in goods made with forced labor under Section 301 of the Trade Act of 1974. He also mentioned that findings from a second Section 301 probe into structural excess manufacturing capacity in 16 major U.S. trading partners, including China, the EU, and Japan, would be released in the coming weeks. Tariffs from this probe could potentially exceed the 15% cap unless limited by existing trade deals. Regarding the EU trade deal, Greer clarified that the agreement allows the U.S. to impose tariffs "up to a certain level," and the Section 301 findings grant President Donald Trump the authority to do so. EU Trade Commissioner Maros Sefcovic, who met with Greer at the OECD meeting, confirmed that both sides agreed "the deal is the deal," signifying for the EU the terms agreed upon at Turnberry, which include an all-inclusive 15% tariff. Sefcovic noted that EU countries were surprised to be targeted by forced labor tariffs given their high labor standards but expected the European Parliament to approve the Turnberry deal with the Trump administration. The EU is also working to implement a bloc-wide ban on all products involving forced labor by December 2027.