The US has threatened 60 economies with new tariffs because they did not prevent imports of products suspected of forced labor or did not adequately review existing import bans. The Office of The US Trade Representative announced this late on Tuesday evening (local time).
Accordingly, the European Union (EU), Great Britain and Switzerland, but also countries in Africa, Asia and Latin America as well as Canada and China must expect additional tariffs of between 10 and 12.5 percent. "It is unacceptable that our major trading partners do nothing to stop imports of goods made using forced labor. This results in U.S. workers being forced to compete on an unlevel playing field worldwide"said Trade Representative Jamieson Greer, according to the release. "We will no longer tolerate this inequality."
Hearing period until early July before new tariffs are due
The US Trade Representative is based on an investigation that began on March 12, according to the statement. Accordingly, it was related to the "Failure of various economies to enact and effectively enforce a ban on imports of goods produced using forced labor." However, the tariffs should not come into force immediately. Instead, objections can initially be made until July 6th, with a hearing scheduled to take place on July 7th.
China criticized the US actions. The People’s Republic has always spoken out against any kind of customs measures, said Foreign Office spokeswoman Mao Ning in Beijing. Customs and trade wars are not in the interests of both sides. Regarding the accusation of forced labor, Mao said that China rejects it. "There is no so-called forced labor in China"she continued.
US President Donald Trump achieved a stage victory in the legal tug-of-war over his controversial customs policy in mid-May. An appeals court temporarily stayed a lower court’s ruling that Trump’s temporary tariffs on imports from around the world were unlawful. Importers must now continue to pay the 10 percent duty.