US Pledges to Honor 15% Tariff Caps in EU Deal

U.S. Trade Representative Jamieson Greer announced in Paris that the United States will respect existing 15% tariff caps established in trade deals with the European Union and Japan. The commitment follows a June 2 White House proposal to impose import taxes of at least 10% on 60 economies, including a 10% levy on the EU and 12.5% on Japan, stemming from a Section 301 investigation into forced labor.

Speaking at an OECD ministerial meeting, Greer asserted that these new tariffs are compatible with the Turnberry deal reached in Scotland last July. This framework agreement establishes a 15% tariff ceiling on EU exports in exchange for the removal of EU levies on U.S. industrial goods. Greer stated the U.S. intends to resolve problematic trading practices while remaining consistent with the terms of the previous deal, provided partners deliver on their commitments.

EU Trade Commissioner Maros Sefcovic expressed surprise at the forced labor charges given the bloc's labor standards but expects the European Parliament to ratify the Turnberry agreement. However, tensions persist as President Donald Trump has threatened to raise tariffs on European cars to 25% if the deal is not ratified by July 4. Separately, Greer noted that China received advanced notice of the forced-labor announcement and that a second Section 301 probe into structural excess manufacturing capacity is nearing completion.