Credited from: ALJAZEERA
On July 24, 2026, the U.S. announced new tariffs ranging from 10% to 12.5% on goods from over 80 countries, citing failures to adequately enforce bans on imports made with forced labor. This action drew sharp criticism from numerous allies, particularly Australia and New Zealand, where officials stated that the tariffs were "unjustified" and that they have strong measures in place against modern slavery. Australian Trade Minister Don Farrell emphasized that Australia takes the issue of forced labor seriously and called for the U.S. to reverse the tariffs, describing the move as âextremely disappointingâ according to NPR and Al Jazeera.
The U.S. justified these tariffs under Section 301 of the Trade Act of 1974, which was reportedly rooted in allegations that these countries had not adequately restricted their imports of forced labor goods. Many targeted nations have swiftly rejected these claims, with New Zealand's Prime Minister Christopher Luxon asserting that the U.S. investigation did not provide "meaningful evidence" to justify the tariffs. Similar sentiments were echoed by Japan's Chief Cabinet Secretary Minoru Kihara, who expressed regret over the imposed tariffs and affirmed Japan's compliance with international norms concerning labor practices, according to Los Angeles Times and Al Jazeera.
China's Ministry of Foreign Affairs also criticized the tariffs, reiterating their long-held opposition to unilateral measures, stating that "tariff wars and trade wars do not serve any parties' interests." As the world's second-largest economy, China faces a 12.5% tariff under the new regime. This finding comes after Beijing had previously appeared to find some solace in a temporary deferral of further tariffs following successful negotiations earlier in May with the U.S., according to NPR and Los Angeles Times.
The tariffs were implemented just as previous emergency tariffs imposed after a Supreme Court ruling expired at midnight on July 24. Traders are concerned that these levies could further complicate global supply chains and lead to increased costs for consumers. Wendy Cutler, a former senior U.S. trade official, mentioned that while the new duties are structured to include exemptions for certain products, they will still contribute to elevated prices for end consumers and businesses. This complexity comes amidst ongoing tensions between the U.S. and its trading partners, especially regarding allegations of forced labor, according to NPR and Los Angeles Times.