China's Commerce Ministry Opposes U.S. Section 301 Forced Labor Tariff Measures
Claire Weston
The U.S. imposed Section 301 tariffs on 60 economies — including a 12.5% levy on Chinese goods — citing failures to ban forced-labor imports; China's Commerce Ministry called the move unilateral protectionism and warned it reserves the right to retaliate.
What tariff did the U.S. just impose?
The U.S. Trade Representative announced final measures on July 23, targeting economies that have "not prohibited imports of forced-labor products."
The action covers 60 economies, not China alone — but China is the primary target, hit with a 12.5% Section 301 tariff.
This means → this is not a bilateral dispute. Washington is using a single justification to pressure dozens of economies at once, with Beijing bearing the heaviest blow.
Why does China say the U.S. "has no standing"?
The Commerce Ministry spokesperson pointed out that the U.S. itself has never ratified the 1930 Forced Labour Convention.
In plain terms = the U.S. is levying tariffs on others for forced labor while refusing to sign the very international treaty on the subject — Beijing sees that as a moral contradiction.
China also stressed it has a comprehensive domestic labor-law framework and actively combats forced labor.
Does 12.5% cross the "red line"?
The Ministry cited a commitment from U.S.–China trade talks: Washington pledged that replacement tariffs on Chinese goods would not exceed 20%.
At 12.5%, the new levy remains within that ceiling.
This means → Beijing objects, but has not declared a breach of the trade-talk consensus — the real trigger would be any move pushing the number higher.
What leverage does China still hold?
Beijing stated explicitly that its retaliatory measures against the first-round fentanyl tariffs and reciprocal tariffs remain in effect and have not been withdrawn.
The Ministry said it will "comprehensively assess subsequent U.S. moves" and reserves the right to take all necessary measures.
This reflects a "watch and warn" posture rather than immediate escalation — but if Washington raises the stakes further, the counter-tools are already in place.
Content is for reference only, not financial advice.