Australia, Japan, New Zealand reject US forced labor tariffs
Asia-Pacific allies Australia, Japan, and New Zealand jointly reject US forced labor tariffs.
Event / Economy
Trump administration implements tariffs on 60+ countries citing forced labor enforcement, with varying rates by region and trade relationship. Simultaneously, EU increases tech regulation enforcement including major fines against Google.
2026-08-15 to 2026-11-12 · UTC publication dates
Coverage begins 24 Jul, 00:29 UTC
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The United States imposed tariffs of 10% or 12.5% on products from approximately 60 economies effective July 24, 2026 at 00:01 UTC. These tariffs replace temporary 10% tariffs implemented in February 2026 that expired at the same time.
Australia, Japan, and New Zealand, three US allies in Asia, publicly opposed the new tariffs before their implementation. Australia called them unjustified, New Zealand found them extremely disappointing, and Japan expressed regret over the measures.
Canada was subjected to an additional 50% tariff on selected products, scheduled to take effect one month after the announcement on July 21, 2026. The new tariffs target specific product categories rather than all Canadian exports.
Jamieson Greer, US Trade Representative, stated that allowing forced labor products creates unfair competition and emphasized that the US wants all countries to have equal labor protections. The US has agencies and processes to identify companies and countries with forced labor practices and stops their products at the border.
The US Supreme Court had previously ruled a majority of tariffs implemented by Trump since his return to office as illegal. This prompted the administration to base the new tariff justification on different legislation targeting specific sectors like steel, aluminum, copper, lumber, and automobiles.
The European Union, United Kingdom, Mexico, and Canada face 10% tariffs on selected products entering the United States, applied by the Trump administration based on its assessment that these countries have incomplete legislation addressing forced labor in supply chains.
China, Japan, South Korea, and Switzerland are among approximately 40 countries subject to 12.5% tariffs on their products entering the United States. Energy and raw materials not produced in the US are excluded from the tariff list.
Brazil faces 25% tariffs on approximately half of its exports to the United States, effective from July 23, 2026. This represents escalating US tariff actions against major trading partners.
An investigation launched in mid-March 2026 by US Trade Representative Jamieson Greer examined whether US trading partners had completely eliminated forced labor products from their supply chains. The new tariffs resulted from this investigation's findings.
Brazilian President Lula announced immediate retaliation measures in response to the 12.5% US tariffs, characterizing them as arbitrary and unjustified. He stated Brazil would activate reciprocity instruments under Brazilian law and bring the matter before the World Trade Organization dispute resolution mechanism.
The European Commission imposed a 890 million euro fine on Google on July 23, 2026 for violations of EU digital regulations. The fine comprised 460 million euros for giving preferential treatment to Google's own services in search results across commerce, hotels, transportation, and sports categories, and 430 million euros for anticompetitive practices on the Google Play Store. The Commission threatened daily fines if Google did not comply with its rules. Google was given 60 days to present solutions.
Jamieson Greer, US Trade Representative, criticized the European Union for an increasingly aggressive approach targeting American technology companies. He suggested that Brussels risked weakening its commercial agreement with Washington through such actions.
Jamieson Greer, US Trade Representative, justified the new tariffs as measures to prevent trade in forced labor products and address what he characterized as both a human rights violation and unfair trade practice. He stated the goal was to ensure all countries had equivalent forced labor protections and that allowing forced labor-produced goods created unfair competition against domestic products.
China declared opposition to the new 12.5% US tariffs applied to Chinese goods. Beijing warned that tariff wars and trade wars serve no party's interests.
The European Union, along with Canada, Mexico, Argentina, India, and the United Kingdom, received a lower 10% tariff rate compared to other countries that faced 12.5% rates. The EU's tariff rate was consistent with commitments made under a trade agreement concluded between Brussels and Washington in 2025. EU spokesperson Olof Gill noted that the 10% rate included reinstatement of exemptions on certain European products including cork, diamonds, aircraft, spare parts, and generic medicines.
Since 2017, Google has accumulated over 8 billion euros in fines from the European Union. In early July 2026, the European Court of Justice confirmed Google's obligation to pay 4.125 billion euros, a penalty imposed by the EU in 2022 for abuse of dominance regarding its Android mobile operating system.
Australia, Japan, and New Zealand, all US allies in the Asia-Pacific region, publicly opposed the new 12.5% tariffs imposed on them, calling them unjustified and disappointing. Australian Commerce Minister Don Farrell stated that Australia is among countries taking forced labor most seriously and pledged to pressure the US Trade Representative to remove all tariffs on Australian products.
Norway and Switzerland, as non-EU European countries, were assigned 12.5% tariff rates. Norwegian Foreign Minister Espen Barth Eide stated opposition to the tariffs, asserting that Norway already has clear rules preventing trade in forced labor-produced goods. Switzerland acknowledged the tariffs while noting they represented a slight improvement compared to the 15% rate previously applied to Swiss products under a November 2024 bilateral agreement.
The United States imposed new tariffs ranging from 10% to 12.5% on approximately 60 countries, including China, Japan, South Korea, India, the European Union, Brazil, Canada, Mexico, Australia, and Egypt. The tariffs took effect on July 24, 2026 at 00:01 UTC, replacing temporary 10% tariffs that had expired. The administration justified the tariffs based on an investigation into whether trading partners had sufficiently eliminated forced labor products from their supply chains. The tariffs were applied based on the US Trade Representative's determination that no country had adequately addressed forced labor concerns.
The Trump administration announced tariffs ranging from 10% to 12.5% on more than 60 trading partners beginning Friday, July 24. Countries that have implemented forced labor prohibitions will face 10% duties, while those that have not will receive 12.5% tariffs. The tariffs take effect at 12:01 a.m. on July 24. This action is taken under Section 301 of the Trade Act of 1974 and follows an investigation by the U.S. Trade Representative's office.
Asia-Pacific allies Australia, Japan, and New Zealand jointly reject US forced labor tariffs.
Supreme Court precedent constrains the legal foundation for new forced labor tariffs targeting 60+ countries.
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Key US allies Australia, Japan, and New Zealand formally condemn the forced labor tariff regime.
Regional tariff rates span 10-25%, with Brazil and Canada facing the steepest increases.
Trump administration imposes tariffs on 60 countries for forced labor non-compliance, with 17 receiving reduced rates.