US Proposes Tariffs Over Alleged Forced Labor. Here's How Pompeo, Markets Reacted.

Summary

The US proposed tariffs of at least 10% on imports from 60 economies over alleged forced labor, under Section 301 of the Trade Act. Former Secretary of State Mike Pompeo defended the tariffs as a legitimate policy tool, rejecting the notion they are a distraction. Market reaction showed early downside in Vietnam equities and the Australian dollar.

• US Trade Representative proposed 10-12.5% tariffs on 60 economies over forced labor allegations.
• Mike Pompeo said tariffs are a legitimate use of US power to achieve objectives.
• Pompeo dismissed the idea that tariffs are a distraction from other negotiations.
• Initial market reaction included Vietnam equities falling up to 1% and AUD weakening.
• The tariffs are under Section 301 of the 1974 Trade Act with hearings scheduled for July 7.