U.S. Upholds 15% EU, Japan Tariff Caps as New Forced-Labor Duties Test Deal Terms
Updated
Updated · Detroit News · Jun 4
U.S. Upholds 15% EU, Japan Tariff Caps as New Forced-Labor Duties Test Deal Terms
3 articles · Updated · Detroit News · Jun 4
Summary
Greer said Washington will honor tariff ceilings in its trade deals with the EU, Japan and others, even after unveiling new forced-labor tariffs that hit the EU at 10% and Japan at 12.5%.
Those duties rest on a separate legal basis, he said, with Section 301 authority allowing tariffs up to agreed levels under the Turnberry-style arrangements.
A further Section 301 probe into excess manufacturing capacity could still push overall U.S. tariffs on EU and Japanese goods above 15%, creating the main unresolved risk for both deals.
Sefcovic said the EU reads the agreement as an all-inclusive 15% cap, though he expects the European Parliament to approve the deal despite surprise that the bloc was targeted over forced labor.
The dispute leaves room for more friction as the EU prepares its own bloc-wide ban on products made with forced labor from December 2027.