New US tariffs linked to foreign forced labor claims anger trading partners

Key Points:

• The U.S. imposed new tariffs of 10% to 12.5% on imports from 60 countries, citing inadequate enforcement against goods made with forced labor, drawing widespread objections from trading partners including China, Japan, Australia, New Zealand, and the EU.
• Australia and New Zealand condemned the tariffs as unjustified and harmful to trade, with Australian Trade Minister Don Farrell emphasizing Australia's serious stance against modern slavery and pledging continued lobbying to remove the tariffs.
• Japan and South Korea protested the tariffs, with Japan expressing regret over the measures despite prior assurances, while South Korea plans to maintain close communication with the U.S. to balance mutual trade benefits amid ongoing investigations.
• China strongly opposed the unilateral tariffs, warning that tariff wars harm all parties and noting that the current rates are lower than last year’s, with some exporters shifting focus to European markets to mitigate impact.
• Experts suggest the tariffs, which include many product exclusions, may have less disruptive effects than previous rounds but will still raise costs for consumers and businesses; further tariffs related to structural excess capacity may be introduced later this year.