China rejects U.S. 12.5% Section 301 tariff, says cap pledge was 20%

Beijing said it firmly opposes the U.S. replacement tariff tied to alleged forced-labor imports, urged Washington to remove the unilateral measure, and said earlier trade talks included a pledge to keep such tariffs at or below 20%.

Summary

China's Ministry of Commerce said it firmly opposes a U.S. 12.5% replacement tariff on Chinese goods imposed under Section 301 over imports allegedly linked to forced labor, calling the move unilateral and protectionist and urging Washington to abolish it. In comments published July 27, Beijing said the United States had indicated during bilateral trade consultations that substitute tariffs on Chinese goods would not exceed 20%, while the current level stands at 12.5%. China said it reserves the right to take necessary measures but remains open to dialogue based on mutual respect, equality and mutual benefit.

Terms & Concepts
  • Section 301: U.S. trade law used to investigate and respond to foreign trade practices, including through tariffs.
  • USTR: Office of the United States Trade Representative, the U.S. agency responsible for trade policy and tariff actions.
  • replacement tariffs: Substitute import duties imposed on goods, which China said the United States had pledged to cap at 20% in bilateral talks.