US will honor tariff caps in trade deals, says Greer

Investing.com -- The United States will maintain tariff limits set in trade agreements with the European Union, Japan and other nations, according to U.S. Trade Representative Jamieson Greer. He stated on Thursday that upcoming U.S. tariffs related to forced labor issues fall within legal boundaries to enforce these caps.

Speaking to reporters in Paris during an OECD ministerial meeting, Greer said the U.S. recognizes that existing agreements must be honored.

The U.S. has established agreements with the EU and Japan that restrict American tariffs on most imports from these regions to a maximum of 15%.

Greer's office announced on Tuesday a new round of tariffs on certain economies, citing their failure to prevent trade in products made with forced labor. Under this announcement, the EU faces a 10% tariff while Japan faces 12.5%. An additional Section 301 investigation examining excess manufacturing capacity could result in combined tariffs on goods from both economies exceeding the 15% threshold.

Greer explained that the EU trade agreement permits the U.S. to impose tariffs up to a specified limit. He noted that Section 301 investigations provide President Donald Trump with the legal authority to implement such measures.

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