China Opposes New US "Forced Labor" Tariffs, Demands Their Withdrawal

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Beijing Calls the Tariffs "Protectionism"

China's commerce ministry said on Monday that the newly imposed US duties on Chinese goods were unjustified and amounted to little more than old-fashioned protectionism dressed in human-rights language. The ministry demanded that Washington scrap the measure entirely.

The statement was unusually blunt even by the standards of the ongoing US-China trade rivalry. Beijing accused the Trump administration of having "long manipulated" the forced-labor issue for political leverage, arguing that China already maintains a comprehensive body of labor law. The ministry also pointed out, pointedly, that the United States itself has never ratified the 1930 Forced Labor Convention — an international treaty aimed at abolishing forced and compulsory labor worldwide.

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What the New US Tariffs Actually Do

On July 24, the Trump administration's new duties took effect on imports from 60 trading partners, including China, the European Union, Japan, India and dozens of others. The tariffs — either 10% or 12.5%, depending on the country — followed a Section 301 investigation by the US Trade Representative into whether these economies had failed to adequately ban or enforce prohibitions on goods made with forced labor.

China was assigned the higher 12.5% rate, alongside most of the other economies under investigation, including the EU and Brazil. Washington has framed the measure as a continuation of its broader effort to keep goods tied to human rights abuses — particularly the documented use of forced labor of Uyghurs and other Muslim minorities in China's Xinjiang region — out of American supply chains.

Beijing, notably, has not disputed the 12.5% figure itself. The commerce ministry pointed out that during earlier trade talks, Washington had pledged that any replacement tariffs on Chinese goods would stay under 20% — and the new rate technically respects that ceiling. That detail suggests China's objection is less about the number and more about the justification behind it.

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A Fragile Truce Under Renewed Strain

The timing is delicate. The new duties risk unsettling a cautious trade truce reached between the world's two largest economies last year, one that had included a Chinese pledge to buy 200 Boeing aircraft in exchange for an extension of the broader tariff standoff. Both governments have also been quietly preparing the diplomatic groundwork for a possible visit by Chinese President Xi Jinping to the United States in September — a trip that would mark a significant, if cautious, thaw.

Despite the sharp language, Beijing left the door open. The ministry said it remains willing to continue dialogue "based on mutual respect, equality and mutual benefit," while reserving the right to retaliate if Washington pushes further. It called on both sides to "reduce the problem list and lengthen the cooperation list" — diplomatic phrasing for de-escalation, even as the rhetoric stays combative.

Beyond China: A Wider Trade Backlash

China was far from alone in objecting. America's own allies, including Australia, the European Union and the United Kingdom, also pushed back against the forced-labor justification for the new duties, with several governments calling the accusations exaggerated or unfounded. The tariffs followed the collapse of an earlier set of "Liberation Day" duties, which the US Supreme Court had ruled unconstitutional earlier this year — leading the administration to pursue the same tariff goals through a different legal channel, Section 301, instead.

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Why This Matters

For ordinary consumers and businesses, this is more than a diplomatic spat. Tariffs of this size typically translate into higher import costs, which tend to be passed along to shoppers eventually — from electronics to clothing. For Washington, the forced-labor framing keeps human rights concerns, especially over Xinjiang, squarely on the table in trade negotiations, even as both governments try to stabilize their broader economic relationship ahead of a potential Xi-Trump summit this fall.

Whether this latest flashpoint derails the fragile truce — or simply becomes another item on an already long list of grievances — will likely become clearer in the weeks ahead, as both sides weigh their next moves.

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Sources

1. Reuters — "China opposes US 'forced labour' tariffs, calls for them to be cancelled," July 27, 2026: https://www.reuters.com/world/china/china-opposes-us-forced-labour-tariffs-calls-them-be-cancelled-2026-07-27/
2. NPR (citing AP) — "U.S. allies hit with new tariffs object to Trump's forced labor allegations": https://www.npr.org/2026/07/24/nx-s1-5906301/us-global-trump-tariffs-reaction
3. Anchorage Daily News (AP) — "US tariff hikes linked to claims of foreign forced labor dismay and anger trading partners": https://www.adn.com/nation-world/2026/07/24/us-tariff-hikes-linked-to-claims-of-foreign-forced-labor-dismay-and-anger-trading-partners/
4. Reuters — "China says it will buy 200 Boeing jets, seek extension of US tariff truce," May 20, 2026: https://www.reuters.com/business/aerospace-defense/china-says-it-will-buy-200-boeing-jets-seek-extension-us-tariff-truce-2026-05-20/

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