The EU, Japan, and China oppose the new US tariffs, saying that this tax imposition is unfounded.
Many countries objected to President Donald Trump’s administration’s imposition of tariffs of 10% and 12.5%, citing that trading partners did not prevent the circulation of products produced with forced labor.
President Donald Trump spoke in the Oval Office of the White House, June 22. Image: AP
Said above Channel News AsiaMs. Kaja Kallas, senior representative for foreign policy of the European Union (EU), said that compared to US labor policy, EU workers enjoy paid leave and very good working conditions. “The imposition of taxes is unfounded,” she said.
New Zealand is subject to a 12.5% tax rate by the US. Prime Minister Christopher Luxon said the tariffs were “extremely disappointing”, unjustified and harmful to their trade. Besides, the US government’s investigation – the basis for the tax imposition – did not provide convincing evidence for the allegations they made.
“Tariffs are not the solution – they increase costs and destabilize businesses,” Mr. Christopher wrote on social networks.
Japan also opposes the 12.5% tax imposed on its exports. Chief Cabinet Secretary Minoru Kihara noted that Tokyo had been reassured by Washington that there would be no additional tariffs beyond the previous agreement on a 10% import tax.
“It is unfortunate that the imposition of tariffs is based on the failure to prevent the circulation of products produced with forced labor, while Japanese industry and trade comply with international rules,” Mr. Kihara stated.
China, the world’s second largest economy, “opposes all forms of unilateral tariffs”. Foreign Ministry spokesman Lin Jian emphasized that tariff and trade wars do not serve the interests of any side.
Trade tensions have cast a shadow on the relationship between the US and China. The heavy tariffs Mr. Trump imposed on “Liberation Day” caused the amount of goods from China to the US to decrease sharply. In May, Mr. Trump and Chinese President Xi Jinping agreed to establish new trade and investment councils. The two leaders plan to meet again in September, when Mr. Xi visits the US.
The wave of protest against the Trump administration’s new tax rates took place right in the US. On July 24, two small businesses filed a lawsuit against the country’s government for a new round of tax impositions, citing that the imposition of the new tax policy exceeded the President’s authority. The suit argues that new tariffs should be based on more detailed findings about country-specific behavior. The plaintiffs are supported by a nonprofit advocacy group that has successfully sued in previous rounds of tariffs.
The imposition of new tariffs was proposed by the US in early June, after a lengthy investigation into partners’ policies in preventing the circulation of products made with forced labor. The investigation was conducted under Article 301 of the Trade Act of 1974. The Office of the US Trade Representative (USTR) said that this disadvantages the US in competition.
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