New US tariffs loom for economies failing to prevent forced labour goods

The US has threatened 60 economies with new tariffs for failing to prevent imports of products made with alleged forced labour or for inadequately enforcing existing import bans. The Office of the US Trade Representative announced this late on Tuesday evening (local time).

Consequently, the European Union (EU), the UK and Switzerland, as well as countries in Africa, Asia and Latin America, Canada and China, can expect additional tariffs of between 10 and 12.5 percent. “It is unacceptable that our most important trading partners are doing nothing to prevent the import of goods produced using forced labour. This forces American workers to compete on an uneven playing field globally,” said Trade Representative Jamieson Greer, according to the statement. “We will no longer tolerate this inequality.”

Hearing deadline set for early July before new tariffs are due

The US Trade Representative is basing this on an investigation that began on March 12, as stated in the announcement. According to the statement, it was related to the “failure of various economies to enact and effectively enforce an import ban on goods produced using forced labour.” The tariffs are not scheduled to take effect immediately. Instead, objections can be raised until July 6, with a hearing scheduled for July 7.

China criticised the US action. The People's Republic has always opposed any kind of tariff measures, said Foreign Ministry spokesperson Mao Ning in Beijing. Tariff and trade wars are not in the interest of either side. Regarding the accusation of forced labour, Mao said that China rejects it. “There is no so-called forced labour in China,” she continued.

In the legal battle over his controversial tariff policy, US President Donald Trump achieved a partial victory in mid-May. An appeals court temporarily suspended a lower court's decision that had classified Trump's temporary tariffs on imports from around the world as illegal. Importers must now continue to pay the 10 percent levy for the time being.

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