Developed Countries Including China Hit 12.5% Forced Labor Tariff

[ABS News Service/27.07.2026]

US President Donald Trump's latest set of tariffs drew immediate objections from America's trading partners including China and Japan, with Australia's trade minister slamming them as "completely unjustified" on Friday, according to an Associated Press news service report.

The Administration announced tariffs of 10 percent to 12.5 percent on 60 economies late Thursday, saying the countries had failed to adequately enforce a ban on goods made with forced labor.

The new tariffs took effect just as stopgap levies Trump imposed after a stinging defeat at the Supreme Court expired Friday.

Australian Trade Minister Don Farrell rejected claims linking Australia, a major exporter of beef, gold and copper, to modern slavery and raising the tariff on its exports to the US to 12.5 percent from the 10 percent level imposed after Trump's “Liberation Day” hikes last year.

“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 told reporters in Adelaide.

Australia believes the higher tariffs are “completely unjustified and we will continue to lobby the United States Trade Representative to remove all tariffs on Australian goods,” Farrell said.

New Zealand Prime Minister Christopher Luxon said the tariffs on his country, also subject to a 12.5 percent import duty, were “extremely disappointing,” unjustified and harmful to trade.

European Union foreign policy chief Kaja Kallas questioned the US stance in comments on Channel News Asia. “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.

Also facing a 12.5 percent tariff, Singapore's Ministry of Trade and Industry said it would “continue to engage the USTR (United States Trade Representative) to explore options.”

Japan likewise protested the 12.5 percent tariff imposed on its exports, noting Tokyo had been reassured by the Trump administration that there would be no more tariffs on top of an earlier agreement on a 10 percent US import duty. "Our understanding is both sides are still committed to that," 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,” Kihara said.

China's Ministry of Foreign Affairs said it “opposes all forms of unilateral tariffs” in response to the new 12.5 percent tariffs. “Tariff wars and trade wars do not serve any parties' interests,” ministry spokesman Lin Jian said at a press conference.