New US tariff proposal draws criticism

The US proposal to impose new tariffs on dozens of trading partners over alleged forced labor concerns has drawn criticism from experts in Canada, Europe and the United States, who argue the move is aimed at preserving Washington’s broader tariff agenda after earlier measures faced legal setbacks.

The Office of the US Trade Representative said earlier this month that, following the findings of an investigation under Section 301 of the Trade Act, 60 trading partners — including Canada and the European Union — could face new tariffs.

“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” Trade Representative Jamieson Greer said.

Ronald Stagg, a history professor at Toronto Metropolitan University, said the new policy “smells of desperation”.

US President Donald Trump’s initial tariff measures were overturned by the courts, while a subsequent round of tariffs imposed under a different legal authority was only temporary, Stagg said.

The Trump administration needed another way to impose tariffs on numerous countries, hence the claim that 60 economies were buying goods made by so-called slave labor, he said.

The new tariffs affect allies as well as competitors, prompting responses from multiple governments. Australia and Canada have sought to demonstrate they are addressing forced labor concerns, and similar concerns have been raised in Europe.

Bernd Lange, chairman of the European Parliament’s Committee on International Trade, said Washington was “desperately searching for new legal grounds to sustain its tariff policy” following previous defeat in courts.

Lange rejected allegations that the EU had failed to address forced labor concerns, calling the accusation “absurd”.

In the United States, Melinda St. Louis, director of Global Trade Watch at Public Citizen, said the administration had turned concerns about forced labor into a “cynical ploy” to recreate a tariff policy that courts had already ruled illegal.

The tariff move comes as Canada, the US and Mexico prepare for a formal review of the United States-Mexico-Canada Agreement, raising questions about the future of North American economic cooperation.

Stagg said Ottawa appears determined to avoid escalating tensions with Washington as talks begin.

“This clear attempt to deal with the Trump administration’s criticisms, as weak as these criticisms are, shows that Canada does not want to unnecessarily provoke the US government, just as formal negotiations over USMCA are beginning,” he said.

Canadian officials have already taken steps to address a number of US concerns, including reviewing regulations affecting US streaming services and exploring solutions to other trade disputes, he said.

However, Washington continues to seek additional concessions while indicating that some tariffs will remain in place, Stagg added.

“The fact that the Americans have been negotiating with Mexico for some time also signals that Canadian negotiations for a renewed USMCA will be difficult,” he said.

Looking ahead to the deal’s review, Stagg said it remains unclear what the Trump administration ultimately hopes to achieve through the negotiations.

“What else will be on the table has not yet been revealed,” he said.

China Daily