How the World Is Reacting to Trump's 'Forced Labor' Tariffs
Officials around the world are pushing back on the rationale for the new import duties.
Read at TIME →
Lead summary from TIME
Officials around the world are pushing back on the rationale for the new import duties.
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Officials around the world are pushing back on the rationale for the new import duties.
Read at TIME →Forced labor is a problem, especially in the US, where prisoners are coerced to work for pennies – or nothing at allUS politics live – latest updatesDon’t believe the Trump administration’s rationale for its new volley of tariffs against everybody.The new levies, ostensibly to punish countries for failing to do enough to curb forced labor, switched on at 12.01am on Friday, to coincide with the expiration of a temporary 10% blanket duty that Donald Trump imposed in February, ostensibly to protect the United States from a balance-of-payments crisis. Continue reading...
Read at US news | The Guardian →President Trump’s justification for his latest round of tariffs has angered foreign leaders. The White House on Friday instituted tariffs between 10 and 12.5 percent on 60 countries around the world by citing Section 301 of the Trade Act of 1974, which allows import duties to be placed on countries that use forced labor. But U.S. trading partners have slammed the move, with Australian Trade Minister Don Farrell calling them “completely unjustified.”“We believe that amongst all of the countries in the world Australia does take the issue of slavery, modern slavery, seriously, and will continue to do that,” Farrell said.New Zealand Prime Minister Christopher Luxon called the tariffs “extremely disappointing,” and said that the U.S. did not have the evidence to say that his country uses slave labor.“Tariffs are not the way—they drive up costs and uncertainty for businesses,” he wrote in a post on X.European Union foreign policy chief Kaja Kallas took offense to the allegations of forced labor, saying that their labor laws are better for workers than those of the U.S. “If you compare our labor laws to the ones of the United States, I mean we have, people have paid vacations, we have very good conditions, labor conditions for our employees, so it’s not really grounded,” Kallas said.Japan’s Chief Cabinet Secretary Minoru Kihara said, “It is regrettable that the measure imposes tariffs on the grounds of non-existence of measures banning imports of goods made by forced labor, even though Japan’s industry and trade are in line with international rules.”It’s pretty clear that the Trump administration is simply trying to use any legal justification for its tariffs that will avoid being overturned by the courts this time, unlike the president’s last attempt. Forced labor is still a problem internationally, but Trump has not presented any specific evidence of any business in these 60 countries having a slavery problem.
Read at The New Republic →The White House has found new legal ways to keep tariffs flowing. But it's not enough to fully replace the revenue from the import taxes the Supreme Court struck down.The intrigue: The administration's replacement tariffs would raise about $105 billion a year — replacing about 60% of the revenue lost when the Supreme Court invalidated the administration's emergency tariff regime, according to the Committee for a Responsible Federal Budget.Why it matters: The administration's new tariffs are narrower and include more carveouts than the emergency duties they replaced, reducing both the potential economic fallout and the revenue they generate.By the numbers: CRFB estimates that Trump's latest tariff actions — including the new duties on dozens of trading partners that took effect overnight, those on Brazil and the proposed tariffs on Canada — would raise about $950 billion through 2036, compared with $1.7 trillion from the broader emergency tariffs, a gap of roughly $825 billion.The projections assume the new tariffs survive legal challenges and remain in place. They also don't account for any additional trade actions the administration could announce in the months ahead.The big picture: The new tariffs generally carry lower rates than the regime enacted under IEEPA, generating substantially less revenue, and are imposed under Section 301 of the Trade Act of 1974. That process allows U.S. trade officials to tailor product coverage — and exclude a range of goods they believe would cause unnecessary economic disruption — after a formal investigation and public comment.Notably, the exclusions include energy products, limiting the risk that new tariffs amplify the inflationary effects of the Iran-related oil shock.The other side: The White House rejects the idea that the new tariffs were aimed at replacing the illegal duties.A senior official said synchronizing them with the expiration of temporary tariffs was intended to provide continuity and predictability for businesses, not necessarily to recreate the earlier regime.What to watch: The Treasury Department is still unwinding the old tariffs. In June, net customs receipts fell to negative $25.6 billion as refund checks to importers outpaced new tariff collections.
Read at Axios →The U.S. Trade Rep announced a wave of tariffs on 60 trade partners in order to replace President Donald Trump’s temporary tariff which expires at midnight.
Read at NBC News Politics →President Trump has faced mounting criticism over the U.S.-Israeli assault on Iran from allies and even members of his own administration.
Read at NYT > U.S. > Politics →3 publishers
President Trump’s new tariffs were hit with a legal challenge Friday from two small businesses who are represented by part of the legal team that toppled Trump’s earlier tariffs at the Supreme Court. The new surcharge, between 10 percent and 12.5 percent on goods imported from 60 trading partners, is the administration’s latest attempt to…
Read at The Hill News →The Trump administration will impose tariffs of up to 12.5% on goods from 60 U.S. trading partners accused of failing to crack down on forced labor, extending the administration's tariffs on much of the world.
Read at Politics - CBSNews.com →Australia and the European Union were among U.S. trade partners who condemned the tariffs.
Read at NPR Topics: News →1 publisher
President Donald Trump is rolling out new Section 301 tariffs for 60 countries as the stopgap measure he implemented in the spring is set to expire. In February, the Supreme Court ruled that the president’s “Liberation Day” tariffs, raised under the International Emergency Economic Powers Act, were unconstitutional. In response, Trump imposed a global section […]
Read at Washington Examiner →