In a statement, US Trade Representative Jamieson Greer framed the action as a measure to protect American workers. "The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field," he said . Analysts saw the move as part of a broader Trump administration effort to reinforce its tariff walls and gain new trade leverage
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China's response was swift and unequivocal, rejecting the legal basis and factual claims of the US proposal. Foreign Ministry spokeswoman Mao Ning dismissed the findings as a "pretext" for protectionism and denied the existence of forced labour in the country's production sectors .
"There is no so-called forced labour in China, and we oppose using this as an excuse for political manipulation," Mao stated, characterizing the tariffs as a unilateral action that China firmly opposes .
Beyond the denial, Beijing issued a clear warning about the consequences of escalating trade tensions. "Tariff wars and trade wars are not in the interest of any party," Mao said, adding that China would take necessary measures to protect its own rights and interests . This language leaves the door open for potential Chinese retaliatory tariffs or other trade barriers.
The European Union also reacted sharply, with officials expressing a mixture of disbelief and frustration. The Chair of the European Parliament's trade committee, Bernd Lange, described the US findings as "utterly absurd," arguing that the EU has already adopted some of the strictest rules in the world targeting products made with forced labour .
European Commission trade spokesperson Olof Gill formally labeled the proposed tariffs as "unjustified" . Crucially, the EU tied its objection to a recently concluded trade deal with the US, stating that it expects Washington to "fully respect the terms of the trade deal."
Gill warned that any additional tariffs imposed on top of the agreed rates would be "unacceptable" . Echoing the firm stance taken earlier in March, the Commission signaled it was prepared to act, having previously stated it would "respond firmly and proportionately to any violation of the EU-US joint declaration"
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It is important to note that these tariffs remain a proposal and are not yet in effect. The USTR has initiated a public comment period, with written submissions due by July 6, 2026, and related hearings scheduled to begin the following day on July 7 . This window allows affected countries, businesses, and other interested parties to contest the findings and potential retaliation before any final duties are imposed. The final tariff rates, scope, and implementation date could all change based on this consultative process.
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