G20 Split Over US Push to Curb Forced Labour and Excess Industrial Capacity
During a trade conference in Milwaukee, only Mexico and Argentina supported a statement led by the US that called for enhanced efforts to eliminate forced-labour products from supply chains. This statement was released by the US, which is the G20 chair for this year, the day following the conference. Most G20 members rejected the statement, a response linked to the Trump administration's tariffs of 10 percent or 12.5 percent on imports from 59 countries and the European Union, based on claims of insufficient enforcement of forced-labour prohibitions. Additionally, the Office of the United States Trade Representative is pursuing a second 'Section 301' tariff investigation involving 16 trading partners with excess industrial capacity, likely leading to new tariffs soon. This situation underscores rising tensions regarding US trade policies and labor enforcement ahead of impending tariff measures.
Key facts
- Only Mexico and Argentina signed the US-led statement on forced labour supply chains.
- The statement was issued by the US, the 2025 G20 chair, a day after a trade meeting in Milwaukee.
- The Trump administration imposed tariffs of 10 per cent or 12.5 per cent on goods from 59 countries and the European Union.
- The tariffs were based on allegations that those countries fail to adequately enforce bans on forced labour.
- The USTR is conducting a second 'Section 301' tariff investigation into 16 trading partners.
- The investigation targets countries showing signs of excess industrial capacity.
- New duties from the Section 301 probe are widely expected in the coming months.
- The vast majority of G20 countries rejected the US call for cooperation.
Entities
Institutions
- G20
- Trump administration
- Office of the United States Trade Representative
- European Union
Locations
- Milwaukee
- United States
- Mexico
- Argentina