- Trump has imposed new tariffs aimed at punishing the use of forced labor, which replace expiring import taxes.
- The tariffs took effect at 12:01 a.m. Friday and impact U.S. purchases from 60 economies accused of importing goods produced with forced labor.
- More than 80 countries are targeted by the new measures, with tariff rates ranging from 10 percent to 12.5 percent.
- New Zealand Prime Minister Christopher Luxon expressed that the tariffs are 'extremely disappointing to see'.
- Australia's Trade Minister Don Farrell rejected claims linking Australia to forced labor, emphasizing the country's commitment to addressing modern slavery.
- China's Ministry of Foreign Affairs criticized the new 12.5 percent levy, stating that tariff wars do not serve any parties' interests.
- Textile and clothing exporters in India expressed concern that the new tariffs could divert sourcing orders away from India.
- The European Commission responded with cautious optimism, noting that the outcome aligns with US tariff commitments under the EU-US Joint Statement.
The Trump administration's new tariffs target over 80 countries, imposing rates between 10% and 12.5% on goods, claiming to combat forced labor.
New Zealand Prime Minister Christopher Luxon criticized the tariffs as 'extremely disappointing,' stating, “The US investigation did not provide meaningful evidence to support claims in relation to forced labour.”4
Australian Trade Minister Don Farrell also rejected the forced labor claims, asserting, “We believe that amongst all of the countries in the world, Australia does take the issue of slavery, modern slavery, seriously.”
The European Commission responded cautiously, noting the tariffs align with US commitments under the EU-US Joint Statement.
In contrast, China's Ministry of Foreign Affairs condemned the tariffs, stating, “Tariff wars and trade wars do not serve any parties’ interests.”6
Textile exporters in India expressed concern, with Ashwin Chandran stating, “The differential treatment risks diverting sourcing orders for textile and apparel items away from India.”
The tariffs, effective immediately, reflect a broader strategy to reduce reliance on imports, according to critics.
Trump and Chinese President Xi Jinping are expected to meet again in September to discuss trade agreements, following previous talks in May.
“The tariffs affect 60 economies with rates from 10 to 12.5 percent, drawing criticism from Australia and New Zealand over lack of evidence. China's foreign ministry warned tariff wars serve no one's interests, and Trump and Xi are expected to meet in September.”
