US Proposes New Tariffs on China Amid Forced Labor Concerns

The proposed new tariffs would be in addition to tariffs already imposed on China. Last month, the United States announced tariffs ranging from 10 to 12.5 percent on goods from about 60 economies around the world. These countries were accused of not effectively enforcing the ban on products made with forced labor. The move was opposed by many countries, including China. The Trump administration launched a formal investigation in March into the excess industrial capacity and forced labor regulations of many countries, including China. China is being investigated under Section 301 of the US Trade Law. The United States alleges that many of China's industries have excess production capacity, leading to an oversupply of low-priced products in the global market. Its trading partners have raised concerns about China's large production capacity in sectors such as automobiles, solar panels, cement, and steel. China has, however, rejected accusations of overcapacity. Slowing domestic demand in China has caused many companies to grow surplus markets and the country's trade surplus to near-record levels. China's Ministry of Commerce has said that China's trade surplus has never reached a trillion-dollar trade surplus.