China moves to join Brazil’s WTO fight over Trump’s forced labour tariffs

China has requested participation in World Trade Organization consultations initiated by Brazil against US tariffs deemed to impose forced labor penalties. The Chinese request was filed in Geneva on Monday, stating Beijing has a significant commercial interest in the matter. The move was reported by Folha de S. Paulo and confirmed by a Brazilian government source.

China asserts that the additional duties affect all Chinese exports to the US, altering competition conditions. Beijing has been challenging Section 301 of the US Trade Act of 1974 since 2018, arguing the statute enables Washington to impose penalties without multilateral authorization. Under WTO rules, a member claiming a substantial trade interest can notify parties and the Dispute Settlement Body within 10 days of the original complaint.

However, joining the consultations does not make China a complainant, and it cannot request a panel. The forced labor investigation covered 60 economies, including mainland China. A Chinese spokesman in March called the inquiry "highly unilateral, arbitrary and discriminatory," noting the US has never ratified the Forced Labour Convention of 1930.

China has previously challenged US tariffs on Chinese goods under Section 301, but the report found American tariffs inconsistent with global trade rules and has not taken effect. Brazilian tariffs target two US actions, including a 25% duty on digital trade and electronic payment services, and a 12.5% duty on goods made with forced labor.

Brazil contends the measures exceed tariff ceilings and breach the most favored nation rule. The United States has accepted Brazil's request for consultations, although no date has been set.