Greer Says US Will Honor Tariff Caps in Trade Deals With EU and Japan
Yahoo! Finance Canada reported Thursday that US Trade Representative Jamieson Greer has assured trading partners Washington will respect the tariff ceilings built into its bilateral agreements, telling reporters “a deal is a deal” on the sidelines of an OECD ministerial gathering in Paris.
Greer Defends US Tariff Cap Commitments
Greer’s remarks came amid fresh uncertainty over whether newly announced US levies could breach terms already locked in with major partners. The US has separate agreements with the European Union and Japan that cap most American import duties on their goods at 15%. Greer framed those ceilings as firm commitments the administration intends to keep, signaling that partners need not fear Washington abandoning negotiated terms unilaterally.
His comments carry particular weight given the current tense state of transatlantic trade relations. Markets and trade officials have been watching closely for any sign the US might walk back signed terms.
Also Read: What the US-EU Trade Deal Means for Markets
New Forced Labour Levies Complicated the Picture
The reassurance was necessary in part because Greer’s own office unveiled a new round of tariffs earlier this week. Those charges target economies the US determined had failed to adequately restrict trade in goods produced through forced labour. Under that framework, the EU faces an additional 10% levy and Japan an extra 12.5%.
A separate Section 301 probe into excess manufacturing capacity could push total duties on both partners’ exports well above the agreed 15% ceiling. That prospect rattled officials in Brussels and Tokyo who had assumed the bilateral deals provided firm protection.
Greer argued that the forced labour tariff authority gives President Donald Trump a legal basis to impose those charges without violating the agreements. He said the EU deal itself explicitly acknowledged that duties could rise “up to a certain level” under specific legal authorities.
Also Read: Trump Administration Seeks New Tariff Path After Legal Setbacks
Background: A Crowded Tariff Landscape
The EU and Japan deals were themselves the product of bruising negotiations earlier this year as both blocs rushed to avoid broader tariff escalation from Washington. The EU in particular overcame sharp internal divisions to ratify its agreement. The emergence of forced labour surcharges and Section 301 investigations now creates layered tariff structures that legal experts say will be difficult to reconcile cleanly with the caps both sides celebrated at signing.
The OECD meeting in Paris has become an informal arena for trade diplomacy, with Greer holding bilateral talks with multiple counterparts. How partners interpret his “deal is a deal” pledge will shape whether the agreed frameworks hold through the remainder of Trump’s second term.
Read Next: What Rising Tariffs Mean for Global Supply Chains
