China and EU Slam Proposed US Tariffs on 60 Economies Over Forced Labour

On June 2, 2026, a new transatlantic and transpacific trade dispute erupted after the US proposed fresh tariffs on goods from 60 trading partners over their alleged failure to combat forced labour. The proposal, which would add levies of 10% or 12.5% on all imports from the targeted economies, immediately drew fierce condemnation from both China and the European Union, who denied the underlying allegations and signaled they were prepared to retaliate.

Context and Rationale Behind the US Action

The proposed tariffs stem from a sweeping set of investigations launched in March 2026 by the Office of the United States Trade Representative (USTR) under Section 301 of the Trade Act of 1974 . The USTR examined whether 60 economies had failed to adequately prohibit the importation of goods made with forced labour, a failure they argued was "unreasonable" and placed a burden on US commerce .

By June, the USTR concluded that all 60 investigated economies had shortcomings, but it established a two-tiered system of proposed punitive duties based on the severity of the findings .

• 10% Tariff for 16 Economies: This group includes the EU, Canada, Mexico, Taiwan, and the United Kingdom. These economies were judged to have some form of partial prohibition or had made relevant commitments via trade agreements but had failed to effectively enforce them .
• 12.5% Tariff for 44 Economies: This tier targets nations the US judged to have no or insufficient prohibitions. The list includes major economies like China, India, Japan, South Korea, Brazil, and Australia .

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 .

China: Rejection and Rebuke

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.

EU: A Call to Honor Existing Deals

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" .

What Happens Next

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.