Unilaterally imposing tariffs on China in an attempt to build a "trade wall", China firmly opposes the United States' indiscriminate imposition of 301 tariffs

On the 23rd, the Office of the United States Trade Representative issued the final measures based on the results of the 301 investigation on "not prohibiting the import of forced labor products", imposing 301 tariffs on 60 economies including China, and imposing a 12.5% 301 tariff on China. The spokesperson of the Chinese Ministry of Commerce stated on the 27th that China urges the US to correct its erroneous practices and completely cancel the unilateral tariff measures.

The Chinese side has always opposed forced labor, established a sound system of labor laws and regulations, and resolutely prevented and cracked down on forced labor, "said a spokesperson for the Ministry of Commerce on the 27th. On the other hand, the US side has not yet ratified the 1930 Forced Labor Convention and has been manipulating the issue of" forced labor "for a long time. This time, it launched a 301 investigation and imposed unilateral tariffs on the grounds of" forced labor ", which is a typical unilateralism and protectionism. The Chinese side firmly opposes this.

The spokesperson of the Ministry of Commerce said that we have also noticed that the US has repeatedly expressed its intention to replace the tariffs and import surcharges under the International Emergency Economic Powers Act (IEEPA) that have been ruled invalid with 301 tariffs. The US has made a clear commitment in the China US economic and trade consultations that the substitution tariffs on Chinese goods will not exceed 20%. At present, the US has imposed a 12.5% substitution tariff on Chinese goods, and China's countermeasures against the first round of so-called fentanyl tariffs and equivalent tariffs are still effective. We will continue to closely monitor and comprehensively evaluate the follow-up measures taken by the United States, and reserve the right to take all necessary measures.

The unilateral tariff measures taken by the US in this round have also raised concerns among neighboring Mexico. On the 27th, the Mexican newspaper "Rational" reported that the Office of the United States Trade Representative may impose more tariffs on Mexico and 15 other economies after the end of the 301 investigation, citing overcapacity and industrial manufacturing.

Regarding the possible trade restrictions proposed by the United States, Mexico has warned that the North American supply chain will be impacted, costs will rise, and regional cooperation will be weakened. The rational newspaper also mentioned that the unilateral tariff measures of the United States will also raise doubts from the outside world about whether it complies with the rules of the World Trade Organization (WTO) and the provisions of the USMCA.

In fact, the United States is using the USMCA to review negotiations and continue to pressure Mexico, attempting to bind North American countries together to build a "trade wall" against China. Bloomberg reported on the 26th, citing four informed sources, that the US government is requesting Mexico to follow its example of using Section 232 to impose tariffs on Chinese steel imports, with the aim of maintaining preferential tax rates within the US, Mexico, and Canada and implementing common trade barriers against China.

Bloomberg reported that the United States and Mexico have been engaged in bilateral negotiations regarding the review of the USMCA. On July 1st, the US government refused to renew the trade agreement in its current form and instead sought an annual review. A source familiar with the matter revealed that Mexico had proposed earlier this year to significantly reduce steel imports from China in order to push for progress in negotiations.

According to reports, the United States currently has more extensive and forceful restrictions on imported steel and aluminum. The United States imposes a 50% tariff on steel and aluminum products from China and most other economies under Section 232 of the Trade Expansion Act of 1962, and a 25% tariff on steel aluminum derivative products. In contrast, Mexico imposes tariffs of up to 25% on steel products from countries that have not signed trade agreements, and also imposes anti-dumping duties on some products.

Ma Wei, a scholar from the Institute of American Studies at the Chinese Academy of Social Sciences, analyzed in an interview with Global Times on the 27th that although the United States refuses to sign the USMCA in its current form, it is unlikely to abandon the North American trading system. Therefore, the United States adopts a negotiation strategy of further pressure to achieve its predetermined goals. For Mexico, its economic development is highly dependent on the US market, and from the current development trend, it is likely to make varying degrees of compromises and concessions in negotiations with the US.

On the unilateral tariff measures taken by the United States, a spokesperson for the Ministry of Commerce stated on the 27th that they hope the US and China will work together to maintain and implement the consensus of economic and trade consultations, continuously compress the list of issues, and extend the list of cooperation, making more contributions to the constructive strategic stability relationship between China and the United States.