Economy July 27, 2026 08:18 AM

China Condemns U.S. Forced-Labour Tariffs, Urges Their Removal

Beijing labels new duties protectionist while leaving door open for dialogue as ties with Washington remain fragile

By Leila Farooq
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China’s commerce ministry rejected new U.S. tariffs imposed over alleged forced labour as unjustified protectionism, urged their removal and said it reserves the right to respond; the duties, which assign China a 12.5% rate, could strain a fragile trade truce as both sides signal continued dialogue.

China Condemns U.S. Forced-Labour Tariffs, Urges Their Removal
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Key Points

  • The United States imposed replacement tariffs of 10% and 12.5% on imports from 60 trading partners; China was assigned a 12.5% rate.
  • China’s commerce ministry called the tariffs unilateral and protectionist, and urged Washington to withdraw them while expressing openness to dialogue based on mutual respect and equality.
  • The ministry warned the duties could undermine a fragile trade truce and said it reserves the right to take necessary measures in response.

China’s commerce ministry on Monday criticized newly announced U.S. tariffs targeting goods linked to alleged forced labour, calling the measures unjustified and characterizing them as protectionist. The ministry urged Washington to cancel the duties, while indicating Beijing remains open to further talks under specific conditions.

The U.S. last Friday put in place replacement tariffs of 10% and 12.5% on imports from 60 trading partners, including the European Union and China, under an investigation into alleged use of forced labour. China was assigned the higher 12.5% rate.

Chinese officials warned the new duties could jeopardize a fragile trade truce reached between the two largest economies last year, noting the timing comes as preparations continue for a potential visit to the United States by President Xi Jinping in September.

In an official statement, the commerce ministry accused Washington of a long-standing pattern of manipulating the forced-labour issue and described the latest U.S. action as "a typical act of unilateralism and protectionism." The ministry reiterated Beijing’s opposition to what it called the unilateral imposition of tariffs under the guise of forced-labour concerns.

"This time, it (Washington) has again initiated a Section 301 investigation and imposed unilateral tariffs on the grounds of 'forced labour,' which is a typical act of unilateralism and protectionism, and China firmly opposes it," the ministry said.

China’s statement emphasized that it has consistently opposed forced labour and said it has established a comprehensive system of labour laws and regulations aimed at preventing and combating forced labour practices. The ministry contrasted this stance with its view of U.S. policy, noting that the United States has not ratified the 1930 Forced Labour Convention and, in Beijing’s view, has long manipulated the issue of "forced labour."

The ministry also pointed out that Washington had pledged during trade negotiations that any replacement tariffs on Chinese products would not exceed 20%, and noted the newly set 12.5% rate falls within that pledged cap.

While firmly objecting to the tariffs, the statement left room for continued communication. It said China was willing to continue dialogue "based on mutual respect, equality and mutual benefit" to resolve concerns, and urged the U.S. to correct what it described as erroneous practices and fully rescind the unilateral tariff measures.

The commerce ministry added that it reserved the right to take "all necessary measures" in response to further actions by the United States. It also expressed hope that both sides would work together to implement previously reached trade agreements, narrow existing differences, reduce the list of contentious issues and extend areas of cooperation.


Contextual summary: China condemned the U.S. decision to impose replacement tariffs tied to alleged forced labour, urged their removal, and signalled willingness for continued talks while reserving the right to respond.

Risks

  • Escalation of trade tensions between the U.S. and China could disrupt cross-border goods flows and affect exporters and importers in manufacturing and retail sectors.
  • The tariffs may weaken a fragile trade truce, increasing uncertainty for international trade negotiations and business planning across global supply chains.
  • China’s reservation of the right to take "all necessary measures" introduces uncertainty for markets and sectors dependent on stable U.S.-China relations, including commodity exporters and firms reliant on bilateral trade.

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