Beijing Denounces New American Forced Labor Tariffs as Protectionist Obstacle
China’s Commerce Ministry is demanding the revocation of new U.S. tariffs, labeling the move a violation of international trade norms. The 12.5% duty comes amid preparations for a high-level diplomatic summit between President Xi Jinping and Washington.
Trade Tensions Flare Before September Summit
On July 27, 2026, China’s Commerce Ministry issued an official demand for the United States to rescind newly implemented tariffs, characterizing the measures as unjustified protectionism. These duties arrive at a sensitive diplomatic juncture as both nations prepare for a potential U.S. visit by Chinese President Xi Jinping in September. The ministry warned that these unilateral actions threaten the stability of a trade truce established between the global superpowers last year.
The Scope of New Customs Duties
The U.S. government enacted the new tariffs on July 24, 2026, targeting 60 trading partners—including the European Union and China—under allegations of failing to block goods produced via forced labor. While other nations faced a 10% rate, China was hit with a 12.5% levy. Despite the friction, Beijing noted that Washington remained within a previously negotiated ceiling, where the U.S. pledged that replacement tariffs would not surpass 20%.
Beijing Rejects Forced Labor Allegations
China’s Commerce Ministry maintains that the Section 301 investigation used to justify the tariffs is a tool of political manipulation. The ministry countered U.S. claims by highlighting China's existing legal framework designed to prevent labor abuses, while pointedly noting that the United States has yet to ratify the 1930 Forced Labour Convention.
Key points from the Ministry's official stance include:
- Demanding a complete removal of unilateral tariff measures to correct "erroneous practices."
- Maintaining the right to implement retaliatory measures depending on future U.S. escalations.
- Expressing a willingness to sustain dialogue if discussions are based on equality and mutual benefit.
- Urging Washington to shorten the "problem list" and expand the "cooperation list" to honor previous bilateral consensus.
While 45% of Indian exports to the U.S. are reportedly exempt from the broader 10% tariff rollout, China remains a primary target of the 12.5% rate, heightening risks for the global supply chain as the two largest economies navigate this renewed friction.
Source: The Hindu — World
