Market Data 
Topline
President Donald Trump’s new “forced-labor” related tariffs prompted pushback from major trading partners including the European Union, Australia, Brazil and others who deemed the new levies as unjustified and said the White House has failed to clarify the reason for imposing them.
Key Facts
Speaking at the Association of Southeast Asian Nations’ summit of foreign ministers, European Commission Vice-President Kaja Kallas said the forced-labor argument can’t be used against the EU.
She then compared labor laws in the bloc to the U.S., noting “we have paid vacations” and “very good labor conditions” and added that the rationale for imposing this levy on the EU was “not really grounded.”
The Brazilian government, which has clashed with the Trump administration in the past, said the new tariffs lack any “legal basis” and accused the Trump administration of manipulating human rights and workers’ rights to prop up its “protectionist trade policy.”
Brazil announced it would immediately retaliate against the latest tariffs using its “reciprocity law.”
Australia’s Trade Minister Don Farrell said the tariffs were unjustified and said the U.S. has made it clear that its vision for the future is increased tariffs to boost its income rather than “free and fair trade.”
The Japanese government was more guarded in its criticism, calling the latest tariffs “regrettable” and noting that the country’s industrial and trade practices are in “accordance with international rules.”
What Have Other Countries Said?
Singapore’s Foreign Minister Vivian Balakrishnan said he raised the tariff issue with Secretary of State Marco Rubio on the sidelines of the ASEAN summit. “I made the point quite categorically that the U.S. has a trade surplus against us…there really is no technical or economic basis to impose tariffs upon us,” Balakrishnan said. In a post on X, New Zealand Prime Minister Christopher Luxon said the new tariffs were “extremely disappointing” and added: “The US investigation did not provide meaningful evidence to support claims in relation to forced labor. Tariffs are not the way – they drive up costs and uncertainty for businesses.” The Norwegian government said it strongly disagreed with the “unilateral” tariffs and the U.S.’s “justification for this new tariff.” The statement added: “We believe that there is no basis for this tariff against Norway because we already have clear rules that are intended to prevent trade in goods produced using forced labor.”
What Has China Said About The New Tariffs?
Beijing has not yet commented on the latest tariffs, but the Chinese Embassy in Washington was critical of them earlier this month, when they were still just a proposal. The embassy expressed “strong dissatisfaction” and said: “By once again abusing the Section 301 process and placing domestic law above international rules, the US is making a serious mistake.” The latest levies were imposed under Section 301 of the Trade Act of 1974, which allows presidents to impose tariffs in response to unfair trade practices after an investigation. The White House has accused the 60 trading partners of failing “to impose and effectively enforce” a ban on forced-labor practices in trade with the U.S.
Tangent
Canada is one of the 60 countries on the list to be hit by the latest “forced labor” tariffs, facing a 10% levy. In addition, several key exports from the country were slapped with a 50% tariff by Trump, who accused Canada of discriminating against U.S. goods. After an initial guarded response offering talks, Canadian Prime Minister Mark Carney on Thursday signaled he was prepared to respond if needed and said: “Everything is on the table depending on the outcome of the negotiations.” However, Carney noted that Canada doesn’t need to “respond in advance” as doing so would be counterproductive. The 50% tariffs are set to go into effect next month.
further reading
Trump Reimposing Tariffs On 60 Countries, Citing Forced Labor (Forbes)
Carney Says Canada Is Open To Talks After Trump Imposes New 50% Tariffs (Forbes)
Read the full article here
