US Cites Forced Labor Concerns as Grounds for New Tariffs on Nearly 60 Countries, Including Taiwan 

The Trump administration has proposed new tariffs of up to 12.5% on imports from nearly 60 trading partners, arguing that these economies have failed to adequately prevent the import and export of goods produced with forced labor. The move stems from a Section 301 investigation by the U.S. Trade Representative (USTR). It represents the latest effort to rebuild President Donald Trump’s tariff framework after the U.S. Supreme Court struck down earlier emergency tariffs in February.

Under the proposal, countries including Canada, the European Union, the United Kingdom, Taiwan, Mexico, Malaysia, and Indonesia would face an additional 10% tariff because they have adopted only partial or developing measures against forced labor. A higher 12.5% tariff would apply to 45 other economies, including China, India, Japan, South Korea, Vietnam, Australia, and New Zealand. The USTR argues that inadequate enforcement creates unfair competition for American workers and businesses.

The proposal has drawn strong criticism from several trading partners. European officials rejected the U.S. findings, noting that the EU passed legislation in 2024 banning imports linked to forced labor. European leaders accused Washington of seeking legal justifications for tariffs that had already been politically decided. China denied the existence of forced labor within its borders and condemned unilateral tariffs, while India said it would continue discussions with the United States as the investigation proceeds. Taiwan expressed confidence that previously reached agreements would help secure favorable treatment in the final decision.

The tariffs are still under review, with public comments accepted through July 6 and a hearing scheduled for July 7. The proposal includes exemptions for products such as energy resources, rare earths, pharmaceuticals, aircraft parts, beef, coffee, and certain agricultural goods. The USTR also indicated it may create a special mechanism allowing a limited volume of textile and apparel imports to enter the U.S. at reduced tariff rates. However, details have not yet been released.

Reference Sources

1. CNBC - Trump administration cites forced labor concerns as grounds for new tariffs
2. WSJ - US proposes new tariffs on China, EU over forced labor

Europe unveils tech sovereignty package amid growing concerns over reliance on U.S. tech

The European Commission has proposed a new "European technological sovereignty package" aimed at reducing the EU's dependence on Non-Eu technology providers.

The package includes an "open source strategy" for public administrations to promote open and Interoperable Digital systems, promoting open and Interoperable Digital Ecosystems at EU level and within public administrations.

The package includes two draft laws, a Chips Act 2.0 and a cloud and AI development act, alongside an open source strategy and a strategic roadmap for Digitalisation and AI in the energy sector.

The proposals must be approved by all 27 member states.

Reference Sources

1. brusselstimes - EU targets tech dependency with push for open digital ecosystems
2. brusselstimes - EU unveils sweeping tech sovereignty plan amid fears of foreign dependence
3. cnbc - Europe unveils tech sovereignty package amid growing concerns over reliance on U.S. tech
4. europeanunion - Strengthening Europe’s tech sovereignty
5. ft - Europe’s tightrope walk on tech sovereignty

Trump administration proposes 25% tariffs on Brazil despite US trade surplus

The Trump administration's proposed 25% tariffs on Brazilian imports have reignited tensions between the US and Brazil, with President Luiz Inácio Lula Da Silva branding it "Tariflávio" after his top challenger in the country's October presidential election, Flávio Bolsonaro.

Lula's campaign sent directives to allies, local party officers, and supporters to blast the nickname across social media, according to a person familiar with the situation who requested anonymity. By the afternoon, "Tariflávio" was trending on X in Brazil, along with a phrase calling Bolsonaro "the enemy of Brazil." The office of the United States Trade Representative's Monday night tariff threat reignited tensions between Brazil and the US and threatened to derail Trump-Bolsonaro trade talks.

The Trump administration charged Brazil with lax Anti-Corruption enforcement and unfair tariffs of its own, among other things.

The US has had a goods trade surplus with Brazil for years.

The Bolsonaro family allegedly lobbied the US government to impose a 25% tariff on Brazilian goods and take action against Brazil's Pix electronic payment system.

Reference Sources

1. bloomberg - US Tariff Threats Give Lula a New Election Attack on Bolsonaro
2. theguardian - Trump administration proposes 25% tariffs on Brazil despite US trade surplus
3. ft - Trump’s tariff threats spark political storm in Brazil
4. upi - U.S. Trade Representative announces 25% tariffs on Brazil
5. upi - Brazil's President Lula blames Bolsonaro family for U.S. tariff plan

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

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