China Opposes US Forced Labour Tariffs on 60 Trading Partners Including Bangladesh

Beijing / Dhaka, July 27, 2026 — China's commerce ministry on Monday firmly opposed new United States tariffs imposed on Chinese goods over alleged forced labour, calling them "unjustified" and a "typical act of unilateralism and protectionism", and urging Washington to completely remove the measures. The diplomatic clash adds fresh tension to the fragile US-China trade truce and has significant implications for Bangladesh's export competitiveness in the global apparel and textile markets. 🇨🇳

🇺🇸 On Friday, the United States imposed new tariffs of 10 percent and 12.5 percent on goods from 60 trading partners, including the European Union and China, alleging those countries failed to curb imports made with forced labour. China was assigned the higher 12.5 percent rate, while Bangladesh and most other trading partners were subject to the lower 10 percent rate — a development that has prompted sharp criticism from Beijing.

📜 China's Commerce Ministry Statement

🇨🇳 In a strongly worded statement, China's commerce ministry accused Washington of long manipulating the issue of forced labour, calling the new tariffs a typical act of unilateralism and protectionism, while also signalling willingness to continue dialogue "based on mutual respect, equality and mutual benefit" to address concerns.

"This time, it (Washington) has again initiated a Section 301 investigation and imposed unilateral tariffs on the grounds of 'forced labour,' which is a typical act of unilateralism and protectionism, and China firmly opposes it."

📜 The ministry defended China's labour record, drawing a contrast with the United States:

"China has consistently opposed forced labour and has established a comprehensive system of labour laws and regulations to resolutely prevent and combat forced labour practices. In contrast, the US has not only failed to ratify the 1930 Forced Labour Convention, but has also long manipulated the issue of 'forced labour'."

📊 Tariff Rates and Scope

📋 The new US tariffs apply to goods from 60 trading partners and are structured as follows:

• 🇺🇸 10 percent rate — applies to most trading partners including Bangladesh, EU member states, and the UK
• 🇨🇳 12.5 percent rate — applies to China, reflecting Washington's allegations of forced labour practices
• 🌐 60 trading partners — total number of countries subject to the new tariffs

📊 The commerce ministry noted that Washington had pledged during trade talks that replacement tariffs on Chinese goods would not exceed 20 percent, and that the new 12.5 percent tariff imposed under the forced-labour probe remained within that limit. However, the ministry made clear that this did not make the tariffs acceptable.

🤝 China's Demands and Reserved Rights

📜 The Chinese commerce ministry issued a clear call for Washington to reverse course:

"China urges the US to correct its erroneous practices and completely remove the relevant unilateral tariff measures."

⚠ The ministry also said it reserved the right to take all necessary measures as it assessed further US actions — a diplomatic formulation that typically signals potential retaliatory measures if the dispute escalates. However, the statement also struck a conciliatory note:

"It is hoped the US will work with China to uphold and implement the consensus reached in the trade consultations, continuously reduce the problem list and lengthen the cooperation list."

🌏 Implications for the US-China Trade Truce

📊 The new US duties risk undermining a fragile trade truce reached between the world's two largest economies last year, and come as the two sides prepare for a possible visit to the US by Chinese President Xi Jinping in September. The timing of the tariff announcement — just weeks before the planned presidential visit — suggests that the forced labour issue will be a prominent point of contention in upcoming US-China diplomatic engagements.

🇨🇳 For China, the new tariffs represent both an economic and diplomatic challenge. Economically, the 12.5 percent rate adds to existing tariffs on Chinese goods and could further compress Chinese exporters' margins in the US market. Diplomatically, the forced labour framing touches on sensitive sovereignty and human rights issues that Beijing has consistently rejected as Western interference in China's internal affairs.

🇧🇩 Implications for Bangladesh's Export Sector

👕 For Bangladesh, the new tariff structure creates a complex competitive dynamic in the US apparel and textile market. While Bangladesh was assigned the lower 10 percent rate — compared with China's 12.5 percent — the absolute level of the tariff remains a significant burden for Bangladeshi exporters who already operate on thin margins in price-sensitive product categories.

📊 The 2.5 percentage point differential between Bangladesh (10 percent) and China (12.5 percent) provides a marginal competitive advantage to Bangladeshi exporters in head-to-head competition with Chinese suppliers in the US market. However, this advantage is modest and may be offset by other factors including:

• 📱 Vietnam's competitive position — also subject to the 10 percent rate but with established apparel supply chains
• 👕 RMG sector headwinds — Bangladesh's RMG exports already fell 1.64% in FY2025-26
• 💰 Energy cost pressure — ongoing gas shortages raising production costs
• 📈 Export target pressure — $63.4 billion FY27 target requires 15 percent growth

📜 Bangladesh's Diplomatic Position

🌏 Bangladesh has not yet issued an official response to the new US tariffs, but the development creates a delicate diplomatic position for the BNP-led government. On one hand, Bangladesh shares the US concern about forced labour in global supply chains and has its own regulatory framework to ensure compliance with international labour standards. On the other hand, Bangladesh's export-driven economy is highly sensitive to any increase in tariff barriers in major destination markets.

🤝 The Bangladeshi government's response is likely to be calibrated to acknowledge the legitimacy of the forced labour concern while advocating for a more nuanced approach that distinguishes between countries with credible compliance frameworks and those with systemic issues. Bangladesh's recent engagement with the EU on the Generalised Scheme of Preferences (GSP) and ongoing compliance with international labour standards will be relevant context for any diplomatic representations to Washington.

🚢 Global Trade Architecture Implications

📊 The US decision to impose tariffs on 60 trading partners simultaneously represents a significant broadening of the forced labour enforcement approach. By linking trade policy to labour standards across a wide range of countries, the US is effectively reshaping the global trade architecture in ways that could have lasting implications for multilateral trade relations.

🌏 For developing countries like Bangladesh that rely heavily on export-led growth, the proliferation of labour-linked trade conditionalities creates both challenges and opportunities. The challenge is the additional compliance burden and the risk of tariff escalation; the opportunity is the potential competitive advantage for countries that can credibly demonstrate strong labour standards and effective enforcement mechanisms.

📈 Looking Ahead: Strategic Considerations

🏛 For Bangladesh's policymakers and exporters, several strategic considerations emerge from the new tariff landscape:

• 📱 Compliance investment — strengthening labour inspection systems to demonstrate credible enforcement
• 🤝 Diplomatic engagement — working through WTO and bilateral channels to address concerns about the tariff approach
• 👕 Market diversification — accelerating efforts to expand exports to non-US markets
• 📊 Competitive positioning — leveraging the 2.5 percentage point advantage over China in US market segments
• 📜 Bilateral trade agreements — accelerating FTA negotiations to secure preferential market access

🌏 The coming weeks and months will reveal whether the US-China tariff dispute escalates further or moves towards resolution, and how Bangladesh positions itself in this evolving global trade landscape. With the September Xi Jinping visit to the US on the horizon, the diplomatic dynamics between Washington and Beijing will be a key factor shaping the broader trade environment in which Bangladesh's exporters operate.

📊 For now, the immediate implication for Bangladesh is that the new 10 percent US tariff on its exports — announced as part of the same measure that triggered China's sharp response — represents a permanent feature of the trade landscape that exporters and policymakers must adapt to, regardless of how the US-China dispute evolves.