The Trump administration’s latest round of global tariffs has drawn sharp criticism from U.S. trading partners, with governments from Australia to Brazil rejecting the forced-labor justification behind the duties while stopping short of immediate retaliation.
On Thursday, the Office of the U.S. Trade Representative imposed tariffs on 60 economies under Section 301 of the Trade Act of 1974, citing what Washington described as their failure to enforce bans on goods made with forced labor. The duties, which cover the top 60 U.S. trade partners and 99.4% of American imports, are set at 10% for partners that have adopted or committed to import prohibitions and 12.5% for those that haven’t.
The measure replaces a temporary 10% global tariff that was set to expire on July 24. That earlier tariff had been imposed under Section 122 of the trade act after the Supreme Court ruled Trump’s emergency-powers tariffs unlawful in February. The forced-labor investigations provide the administration with what it views as a more legally defensible foundation for baseline tariffs that courts had previously challenged.
Strong Pushback from Key Partners
Australian Trade Minister Don Farrell issued one of the sharpest rebukes, calling the tariffs unjustified and inconsistent with the countries’ free trade agreement. He emphasized that Australia’s measures to combat forced labor and modern slavery rank among the strongest globally and are recognized in the U.S. for their leadership.
Brazil’s government similarly labeled the tariffs arbitrary and unjustified. President Luiz InΓ‘cio Lula da Silva said his country remains open to negotiations but would seek other markets if unable to sell into the United States. The new duty adds to a separate 25% Section 301 tariff imposed on Brazilian goods earlier this month, creating a combined 37.5% barrier that approaches the 50% rate struck down as unlawful last year.
Chile’s trade undersecretariat said the measure contradicted the country’s labor standards and the technical, political, and legal evidence it submitted during the investigation. The government noted that the U.S. resolution doesn’t actually allege Chile exports goods made with forced labor and said it would push for exclusions covering key export products.
More Measured Responses
Canada, which was placed in the lower 10% tier with an exemption for goods compliant with the United States-Mexico-Canada Agreement, struck a more conciliatory tone. Minister for Canada-U.S. Trade Dominic LeBlanc said the move was not unexpected and noted that Ottawa shares Washington’s objective on forced labor. He indicated Canada would continue engaging constructively in the coming weeks.
New Zealand’s foreign ministry said the trade minister made clear Wellington disagrees with the investigation’s findings and would continue to register that position with the U.S. government. Existing exemptions covering roughly 30% of New Zealand’s U.S.-bound exports, including beef and kiwifruit, remain unchanged.
No Immediate Countermeasures
Despite the widespread criticism, no major trading partner has announced retaliatory measures over the forced-labor tariffs. The subdued response suggests many governments are opting to continue negotiations rather than escalate tensions.
According to the Peterson Institute for International Economics, the investigation is not genuinely a labor-standards exercise but rather a mechanism for exporting America’s import ban on Chinese goods and an attempt to recreate the tariff regime struck down by the Supreme Court.
Source: www.cnbc.com β https://www.cnbc.com/2026/07/24/trump-global-tariffs-trade-imbalance-forced-labor.html
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