Global Trade Tensions Rise
China and EU reject US tariffs on 60 economies over alleged forced labor
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China’s foreign ministry rejected U.S. claims of forced labor in its supply chains, calling the allegations a “pretext” for political manipulation and insisting any trade dispute should be handled through dialogue rather than unilateral tariffs. The U.S. Trade Representative has proposed adding 10% or 12.5% tariffs on imports from 60 trading partners, arguing investigations found they failed to effectively curb goods made with forced labor and that the gap disadvantages American workers. China also said forced labor does not exist in China and reiterated opposition to all forms of unilateral tariff measures. In Brussels, the European Union dismissed the forced-labor basis for the U.S. plan as “utterly absurd,” arguing it already has some of the world’s strictest forced-labor rules and that companies are preparing compliance requirements. EU lawmakers said the U.S. appears to be seeking a new legal justification for tariffs rather than responding to the underlying issue, while warning that any additional duties on top of previously agreed rates would be unacceptable.
Key Points
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The U.S. Trade Representative launched the 60 forced-labor investigations on March 12 under Section 301 of the Trade Act of 1974—setting out the legal framework for how the tariff-backed review was conducted.
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USTR Ambassador Jamieson Greer said, “It is unacceptable that our most important trading partners do not address the import of goods made with forced labor,” adding that this “creates a dynamic where American workers are forced to compete globally on unequal terms.”
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A senior EU lawmaker, Bernd Lange, warned the U.S. was seeking a new legal basis after a prior setback at the Supreme Court and criticized the process as: “the impression is increasingly emerging that a tariff measure is sought first, and only then is a suitable legal justification found… if it doesn’t fit, make it fit.”
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Lange said the EU adopted the “world’s strictest legislation” against forced-labour products by end-2024, and that companies were already preparing for requirements to make supply chains more transparent, identify risks, and demonstrate countermeasures—while the European Commission was finalizing implementation guidelines.
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The Chinese foreign ministry linked the tariff dispute to the broader U.S.-China trade cycle, noting that the two sides engaged in “tit-for-tat” tariffs last year before announcing a truce; it said mutual trade in goods and services has since declined to around $414 billion.
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