U.S. allies hit with new tariffs object to Trump’s forced labor allegations

by | Jul 28, 2026 | Business

U.S. allies hit with new tariffs object to Trump's forced labor allegations

The Trump administration implemented fresh tariff measures against more than 60 countries on Friday, reinstating duties just as previous tariffs were set to expire. The action came following an earlier U.S. Supreme Court decision this year that had struck down many tariffs imposed under emergency powers as unconstitutional.

The administration justified the new tariffs by pointing to what it characterized as inadequate enforcement of prohibitions on forced labor in the production of goods. Countries that have adopted and effectively enforced forced labor import bans face a 10% tariff rate, while those without such prohibitions face 12.5% duties on many exports to the United States. Various trading partners retain exemptions for certain sectors under existing trade agreements.

Multiple U.S. allies contested both the tariff increases and the underlying justification. Australia’s trade minister called the 12.5% rate on his country’s exports “unjustified,” asserting that Australia maintains progressive labor legislation. New Zealand’s prime minister characterized the tariffs as “extremely disappointing,” noting that the U.S. investigation did not provide substantive evidence supporting forced labor claims. The European Union’s foreign policy chief questioned the rationale, pointing out that EU labor protections, including paid vacation and employee benefits, exceed U.S. standards.

China, the world’s second-largest economy, drew the higher 12.5% rate and condemned the measure through its Foreign Ministry. Japan also faced the elevated tariff level despite previous reassurances from the Trump administration. Brazil received 12.5% tariffs in addition to previously imposed 25% duties, with the Brazilian president stating his government rejects the measures and accuses the U.S. of manipulating human rights concerns to justify protectionist policies.

Britain negotiated relatively favorable terms, with a 10% rate and exemptions accounting for over 80% of its exports. Mexico similarly retained a 10% rate with substantial duties-free access under the U.S.-Mexico-Canada Agreement.

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