World June 4, 2026 09:32 AM

U.S. Says It Will Honour Tariff Caps in Pacts with EU, Japan as Forced-Labour Tariffs Proceed

Trade representative stresses pact limits, while separate forced-labour duties and investigations could raise levies beyond agreed ceilings

By Nina Shah

U.S. Trade Representative Jamieson Greer said the United States will abide by the tariff ceilings set out in trade agreements with the European Union, Japan and other partners, while asserting that planned tariffs tied to forced-labour findings provide the legal mechanism to apply those duties. Greer spoke on the sidelines of an OECD ministerial in Paris and reiterated that negotiated deals place limits on tariffs, even as new measures and further Section 301 probes could push overall duties above those caps.

U.S. Says It Will Honour Tariff Caps in Pacts with EU, Japan as Forced-Labour Tariffs Proceed

Key Points

  • The U.S. will respect the tariff caps negotiated with the European Union, Japan and other partners, according to U.S. Trade Representative Jamieson Greer.
  • New tariffs tied to forced-labour findings were announced this week, with the EU facing a 10% duty and Japan 12.5% on affected goods.
  • An ongoing Section 301 investigation into excess manufacturing capacity could result in additional tariffs that push overall levies on goods from the EU and Japan above the 15% caps.

PARIS - The United States will uphold the tariff ceilings negotiated in trade agreements with the European Union, Japan and other partners, the U.S. Trade Representative said on Thursday, while also pointing to planned tariffs linked to forced-labour findings as a legal foundation for forthcoming duties.

Speaking on the sidelines of an OECD ministerial meeting in Paris, Jamieson Greer said: "We understand that a deal is a deal." The comment underlined Washington's stated intent to respect the maximum tariff levels negotiated with key trading partners.

The United States has reached arrangements with the EU and Japan that cap U.S. tariffs on most imports from those economies at a maximum of 15%. Those caps are part of the bilateral understandings reached with both partners.

At the same time, Greer’s office earlier this week unveiled a new schedule of tariffs aimed at economies it found had failed to stem trade in goods produced with forced labour. Under that announcement, the European Union would face a 10% tariff and Japan 12.5% on affected goods.

Officials also said a separate Section 301 investigation into excess manufacturing capacity remains under way. Greer warned that if that probe leads to additional measures, overall tariffs on goods from the EU and Japan could be pushed well past the 15% ceiling included in existing agreements.

On the EU accord specifically, Greer noted the text of the agreement acknowledges the United States could impose tariffs "up to a certain level," and that Section 301 investigations give the U.S. president the authority to take such actions. He linked the forced-labour tariff measures and the Section 301 process as the legal route for imposing duties while maintaining that negotiated limits remain recognized by Washington.


The statements reflect a balance the administration is seeking to strike between adhering to negotiated tariff limits and pursuing enforcement actions tied to forced-labour concerns and broader investigations into manufacturing capacity.

Risks

  • If the Section 301 investigation results in further measures, tariffs on EU and Japanese goods could rise above agreed 15% limits - impacting exporters and trade-sensitive manufacturing sectors.
  • The imposition of forced-labour tariffs, even where caps exist, introduces uncertainty for companies reliant on cross-border supply chains and for markets sensitive to trade policy shifts.

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