Trump’s new global tariff draws rebukes from trade partners

From Canberra to Brasília, U.S. trading partners reject President Donald Trump’s justification for forced labor new global tariffsMost have signaled they will continue negotiating rather than retaliating.

The Office of the U.S. Trade Representative on Thursday took action under Section 301 of the Trade Act of 1974, imposing tariffs on 60 economies over Washington’s failure to impose and enforce bans on goods made with forced labor.

The tariffs, which are 10% for partners that have adopted or are committed to implementing import bans and 12.5% ​​for those who have not, cover the US’s 60 largest trading partners and 99.4% of American imports.

The measure replaces a temporary 10% global tariff imposed under Section 122 of the trade law, which was set to expire on July 24, after the Supreme Court ruled in February that Trump’s emergency powers tariffs were unlawful. Forced labor investigations provide the administration with a more durable legal basis for the basic tariff, which is challenged by the courts.

“These tariffs are unfair, contrary to our free trade agreement and should be removed,” Australian Trade Minister Don Farrell said in a statement. he said. “Australia’s measures to combat forced labor and modern slavery are among the strongest in the world, and we are recognized for our leadership globally, including in the United States.”

Brazilian government announces tariffs “arbitrary” and “unfair”. President Luiz Inácio Lula da Silva said he remained open to negotiations but said Brazil would look for other markets if it could not sell to the United States. The new tax builds on a separate 25% Section 301 tariff imposed this month on Brazilian goods, with a 37.5% barrier being rebuilt – close to the 50% rate illegally lowered last year.

The Chilean government said the measure was inconsistent with the country’s labor standards and the technical, political and legal evidence it presented throughout the investigation. expression From the Undersecretariat of Commerce in Santiago. The US decision stated that Chile did not claim to export goods produced using forced labor and that it would press for exceptions covering important export products.

Canada, in the lower tier of 10% with an exemption for USMCA-compliant goods, showed the most moderate tone. Canada-US Trade Minister Dominic LeBlanc said the move was “not unexpected.” expressionHe added that Ottawa shares Washington’s goal on forced labor and will “continue to work constructively” in the coming weeks.

New Zealand’s foreign ministry said in a statement: market report The commerce secretary made clear that Wellington disagreed with the investigation’s findings and would continue to register that view with the US government. Existing exemptions covering around 30% of New Zealand exports to the US, including beef and kiwifruit, remain unchanged.

No major partner has announced measures against forced labor tariffs.

It said the investigation “is not a labor standards enforcement, but a mechanism to export America’s import ban on Chinese goods, as well as an attempt to recreate the tariff regime struck down by the Supreme Court.” Peterson Institute for International Economics he wrote earlier this week.