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U.S. Navigates Trade Deals Amid Forced Labour Tariff Disputes

Greer said planned forced-labor tariffs on 60 trading partners give Washington a legal basis to keep tariff limits in existing trade deals.

  • On Thursday, U.S. Trade Representative Jamieson Greer confirmed the United States will respect tariff caps in trade deals with the European Union and Japan, stating "we understand that a deal is a deal."
  • Targeting 60 countries, the administration unveiled new tariffs on Tuesday after identifying failures to curb forced labor in supply chains, imposing a 10% levy on the European Union and 12.5% on Japan.
  • Trade Commissioner Maros Sefcovic affirmed both sides agreed the "deal is the deal," while Greer acknowledged the U.S. can impose tariffs "up to a certain level" under existing agreements to address problematic trading practices.
  • Section 301 investigations into "unfair" trade practices regarding "structural" excess capacity aim to replace "reciprocal" tariffs the Supreme Court struck down in February, adding complexity to ongoing trade relations.
  • South Korea faces potential 12.5% levies for forced labor enforcement, complicating last year's agreement where Washington lowered "reciprocal" tariffs to 15% from 25% in exchange for South Korea committing to investing $350 billion in the United States.
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Bloomberg broke the news in New York, United States on Thursday, June 4, 2026.
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