US Tariff Hikes Anger Trading Partners 07/24 06:27

   U.S. President Donald Trump's latest set of tariff hikes drew objections 
Friday from America's trading partners including China and Japan, with 
Australia's trade minister slamming them as "completely unjustified."

   BANGKOK (AP) -- U.S. President Donald Trump's latest set of tariff hikes 
drew objections Friday from America's trading partners including China and 
Japan, with Australia's trade minister slamming them as "completely 
unjustified."

   The administration announced extra tariffs of 10% to 12.5% on 60 economies 
late Thursday, saying the countries had failed to adequately enforce a ban on 
goods made with forced labor.

   The new tariffs took effect just as stopgap levies Trump imposed after a 
stinging defeat at the Supreme Court expired at 12:01 a.m. Friday.

   Countries object to what they call unfounded labor claims

   Australian Trade Minister Don Farrell rejected claims linking Australia, a 
major exporter of beef, gold and copper, to modern slavery and raising the 
tariff on its exports to the U.S. to 12.5% from the 10% level imposed after 
Trump's "Liberation Day" hikes last year.

   "We believe that amongst all of the countries in the world Australia does 
take the issue of slavery, modern slavery, seriously, and will continue to do 
that," Farrell told reporters in Adelaide.

   Australia believes the higher tariffs are "completely unjustified and we 
will continue to lobby the United States Trade Representative to remove all 
tariffs on Australian goods," Farrell said.

   New Zealand Prime Minister Christopher Luxon said the tariffs on his 
country, also subject to a 12.5% import duty, were "extremely disappointing," 
unjustified and harmful to trade.

   A U.S. investigation serving as the basis for the tariffs did not provide 
meaningful evidence to support allegations of forced labor.

   "Tariffs are not the way -- they drive up costs and uncertainty for 
businesses," he wrote on X.

   European Union foreign policy chief Kaja Kallas questioned the U.S. stance 
in comments on Channel News Asia.

   "If you compare our labor laws to the ones of the United States, I mean we 
have, people have paid vacations, we have very good conditions, labor 
conditions for our employees, so it's not really grounded," Kallas said.

   Also facing a 12.5% tariff, Singapore's Ministry of Trade and Industry, 
which reiterated its stance of not condoning the use of forced labor, said it 
would "continue to engage the USTR (United States Trade Representative) to 
explore options."

   Some hope to forestall the tariff hikes

   Japan likewise protested the 12.5% tariff imposed on its exports, noting 
Tokyo had been reassured by the Trump administration that there would be no 
more tariffs on top of an earlier agreement on a 10% U.S. import duty.

   "Our understanding is both sides are still committed to that," Chief Cabinet 
Secretary Minoru Kihara told a routine news conference.

   "It is regrettable that the measure imposes tariffs on the grounds of 
non-existence of measures banning imports of goods made by forced labor, even 
though Japan's industry and trade are in line with international rules," Kihara 
said.

   South Korea said it will maintain close communication with the United States 
to preserve a mutual "balance of benefits."

   South Korea's trade ministry said the announcement eased some uncertainty 
over U.S. trade policy, but noted that a Section 301 investigation into alleged 
Korean excess production continues.

   The combined duties on South Korean exports should not exceed 15%, the 
ministry said in a statement.

   Thailand noted it is subject to the new 12.5% tariff by the U.S. under the 
forced labor provision, but the measure exempts around 2,120 items, 
representing more than half the value of Thai goods exported to the U.S.

   Thailand also is monitoring the possibility of an additional tariff on the 
grounds of structural overcapacity under another ongoing U.S. probe against 16 
countries, but Washington has not yet announced those results, the Thai 
Commerce Ministry said in a statement.

   China opposes unilateral tariffs in 'all forms'

   China's Ministry of Foreign Affairs said it "opposes all forms of unilateral 
tariffs" in response to the new 12.5% tariffs, reiterating a longstanding 
statement by Beijing.

   "Tariff wars and trade wars do not serve any parties' interests," ministry 
spokesman Lin Jian told a regular press conference.

   Trade tensions have clouded relations between China and the U.S., two of the 
world's biggest economies, as Trump's hefty "Liberation Day" tariffs resulted 
in a sharp drop in Chinese exports to the U.S.

   Trump and Chinese leader Xi Jinping, who agreed to set up new boards of 
trade and investment at their mid-May meeting in Beijing, are expected to meet 
again in September.

   Some Chinese exporters say, however, the impacts are so far limited as the 
latest U.S. tariffs on China are still at lower levels than last year's rates, 
which were initially 34%.

   "Of course it'd be best if they (tariffs) are not there," said Richard Chan, 
manager of Golden Arts Gifts & Decor, which manufactures Christmas trees and 
decorations in the southern Chinese city of Dongguan and supplies globally to 
those including Walmart.

   Golden Arts' share of sales to the U.S., however, already have fallen to 
approximately 10% to 20% as U.S. tariffs added more uncertainty over the past 
months. They have pivoted more to Europe, which now accounts for roughly 70% of 
their sales, Chan said.

   The latest import duties might stick

   Wendy Cutler, a former senior U.S. trade official, said the latest round of 
tariffs involved "few surprises" since they range just between 10% and 12.5%.

   The U.S. Trade Representative's office spent four months investigating the 
basis for those tariffs to meet legal requirements under Section 301 of the 
U.S. Trade Act of 1974.

   "Time will tell whether the third attempt to impose tariffs is the charm and 
this action stands up to legal challenges," said Cutler, senior vice president 
of the Asia Society Policy Institute.

   These duties are less likely than earlier ones to be overruled by U.S. 
courts, she said.

   Further tariffs may be coming in the fall related to alleged structural 
excess capacity of trading partners, she noted.

   Experts say these tariffs may be less disruptive than others

   Washington is generally tending to engage in increased trade friction, 
William Bratton of BNP Paribas said in a research note Friday.

   "On the positive side, however, these tariffs are lower than the earlier 
(Emergency Powers Act) 'reciprocal' tariffs and appear to exempt a substantial 
proportion of Asia's current trade flows with the U.S.," he said.

   The Trump administration included many exclusions of products from the 
tariffs, including for goods the U.S. does not produce, Cutler noted.

   "This should reduce the impact of these duties. Nevertheless, they will 
contribute to higher prices both for end consumers and businesses importing 
inputs and machinery," she said.