The United States will honor tariff caps established in trade agreements with the European Union, Japan, and other nations, according to U.S. Trade Representative Jamieson Greer.
He stated on Thursday that planned U.S. tariffs addressing forced labor provide the legal basis to do so. “We understand that a deal is a deal,” Greer told reporters during an OECD ministerial meeting in Paris.
Existing deals with the European Union and Japan cap U.S. tariffs on most imports from these regions at 15%.
However, Greer’s office recently unveiled new tariffs targeting economies after determining that these economies failed to curb trade in goods produced with forced labor.
The EU would face a 10% tariff, and Japan would face a 12.5% tariff.
A further Section 301 investigation into excess manufacturing capacity could potentially push overall tariffs on goods from these two economies well past the 15% limit.
Regarding the EU trade deal, Greer explained that the agreement acknowledged the United States’ right to impose tariffs “up to a certain level,” and that the Section 301 investigations grant President Donald Trump the authority to implement such measures.
More details here...
