Countries in Asia are disputing US claims of forced labour in their supply chains, which have led to new tariffs. This pushback raises questions about the validity of these claims and their implications for global trade.
Singapore, Singapore Jul 24, 2026 ALN: SINGAPORE - Asia’s major economies have pushed back against allegations of forced labour, which the United States used on July 24 to impose another round of tariffs. Many view these tariffs as a pretext by Washington to maintain a "tariff wall" on its trading partners. The imposition of these tariffs comes amid a broader context of increasing trade tensions between the US and various Asian nations, highlighting the complex dynamics of international trade and human rights advocacy.
Countries affected by the tariffs, many of which now face a slightly higher rate of 12.5% compared to a flat rate of 10%, have strongly denied the claims of forced labour as unfounded. This denial is significant, as it reflects not only the economic implications of the tariffs but also the reputational stakes involved for these nations. Many Asian countries have been working to improve their labor practices and ensure compliance with international standards, and allegations of forced labour can severely impact their global trade relations.
Japan’s Chief Cabinet Secretary Minoru Kihara called the tariffs "regrettable," asserting that the country’s industries and trade practices comply with international rules. Japan has long been an advocate for fair trade practices and has made significant strides in labor reform, which it argues should be recognized rather than penalized. Kihara's statement underscores Japan's commitment to maintaining a cooperative relationship with the US while defending its trade practices.
Australian Trade Minister Don Farrell described the tariffs as "unjustified" and called for their removal, emphasizing that Australia’s measures to combat forced labour are among the strongest globally. Australia has implemented stringent regulations to ensure that its trade partners adhere to ethical labor practices, and Farrell’s comments reflect a broader sentiment among nations that prioritize human rights in trade.
Ajay Srivastava, founder of the Global Trade Research Initiative in Delhi, criticized the latest US tariff as lacking a credible factual basis, stating, "The United States has not produced evidence that India imports goods made with forced labour." His remarks highlight a critical aspect of the ongoing trade discourse: the need for evidence-based policy-making. The lack of transparency regarding the evidence used to justify these tariffs raises questions about their legitimacy and effectiveness.
Effective July 24, the new tariffs were imposed on 60 US trading partners accused of using forced labour in their supply chains. The US trade department stated these tariffs were determined after months of investigation into forced labour in these countries. This investigation process is crucial, as it sets a precedent for how the US engages with international labor standards and the enforcement of its trade policies.
A 10% rate will apply to countries that have taken some action to prevent the import of forced-labour goods, including Bangladesh, Cambodia, India, Indonesia, Malaysia, Mexico, Pakistan, Sri Lanka, and the United Kingdom. The higher 12.5% rate will apply to most other US trading partners, including China, Japan, and South Korea. This tiered approach to tariff rates reflects the US's strategy of incentivizing compliance among nations while penalizing those it deems non-compliant.
Imports such as fuel, food, and fertilizers will be exempt, as will products like automobiles, metals, and drugs covered by separate levies. Economies with existing trade agreements with the US, such as the European Union, Taiwan, Japan, South Korea, and Switzerland, will receive exemptions from the new tariffs in line with existing deals. These exemptions highlight the complexities of trade agreements and the importance of maintaining alliances in a competitive global market.
Japan’s Kihara emphasized that the US and Japan are committed to their trade pact from 2025, stating, "We share the understanding with the US that last year’s agreement remains unchanged, and both sides are committed to its implementation." This commitment is significant, as it indicates that despite the current tensions, both nations are willing to uphold their agreements and work collaboratively towards mutual economic goals.
The agreement reached in July 2025 set the US’s "reciprocal tariff" on Japanese goods at 15% in exchange for a $550 billion Japanese investment package. This means that with the new rate of 12.5%, Japan faces a slightly lower tariff rate than that of the 2025 trade pact. This situation illustrates the ongoing negotiations and adjustments that characterize international trade, as countries strive to balance their economic interests with compliance to international standards.
Similarly, the South Korean government stated that the US remains committed to a Seoul-Washington tariff agreement reached in 2025 that set tariffs on South Korean goods at 15%. The South Korean Ministry of Trade, Industry and Resources reported, "We have requested that the US side comply with the Korea-US trade agreement." This request underscores the importance of adherence to established agreements, particularly in light of new tariffs that could disrupt existing trade flows.
The EU stated that the new levies align with the US tariff commitments agreed under the EU-US Joint Statement. This alignment is crucial for maintaining a cohesive trade strategy among Western allies, as it reflects a collective approach to addressing issues of forced labour while also navigating the complexities of international trade relations.
The tariff rate for India was initially proposed to be higher at 12.5%, but this was reduced to 10% following negotiations between the two countries, which are also working on a bilateral trade deal. This reduction signifies the importance of diplomatic negotiations in trade policy, as countries often seek to balance their economic interests with the need to uphold ethical labor practices.
India announced on July 13 that it would prohibit the import of goods produced using forced labour, a move that Amitendu Palit, a senior research fellow at the Institute of South Asian Studies, described as "a low-cost tactical move to placate the US." This characterization suggests that while India is taking steps to address the issue of forced labour, the motivations behind such actions may be more strategic than altruistic, reflecting the complex interplay between national interests and international expectations.
With numerous rounds of tariffs being imposed and rescinded since Trump took office, many countries appeared unfazed. Poj Aramwattananont, chairman of the Thai Chamber of Commerce, stated that the Thai business sector is closely monitoring the situation. Thailand received a tariff rate of 12.5%, similar to most competing countries. This observation points to a growing resilience among nations that are accustomed to navigating the shifting landscape of trade tariffs and policies.
“Countries with slightly lower tariff rates than Thailand, such as 10%, may have a slight advantage, but the difference isn’t as wide as in previous measures. Therefore, it’s not yet a significant concern that would significantly impact the competitiveness of Thai businesses,” Poj said. This perspective reflects a broader understanding among businesses that while tariffs can influence market dynamics, other factors such as quality, innovation, and customer service also play crucial roles in maintaining competitiveness.
The reaction from China was also muted, with analysts indicating that the tariffs were expected. The new "forced labour" tariff rate for China is 12.5%, a marginal increase over the expiring 10%. This is in addition to other sectoral tariffs on Chinese goods, such as electric vehicles, steel, and semiconductors, putting China’s new effective tariff rate at 23.4%. The cumulative effect of these tariffs illustrates the ongoing trade war between the US and China, which has significant implications for global supply chains and economic stability.
In conclusion, the recent tariffs imposed by the US in response to allegations of forced labour have sparked significant pushback from major Asian economies. These nations are not only defending their trade practices but are also navigating the complex landscape of international relations and economic policy. The implications of these tariffs extend beyond immediate economic impacts, as they also touch upon broader themes of human rights, compliance, and the evolving nature of global trade agreements. As countries continue to adapt to these changes, the dialogue around trade, ethics, and cooperation will likely remain at the forefront of international discussions.
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