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

• US proposes 10% to 12.5% additional duties on imports from 60 countries over alleged forced labor.
• Former US Secretary of State Mike Pompeo states tariffs are a 'legitimate use of America's power to tax' and not a 'distraction'.
• Countries cited for failing to impose labor rules include Australia, China, and the UK.
• Market reaction includes downside for Vietnam's stock market (down 0.8-0.9%) and the Australian dollar.
• USTR hearings on proposed actions are scheduled for July 7.

The US is proposing tariffs of 10% to 12.5% on imports from 60 countries, including major trading partners, due to alleged forced labor practices. Former US Secretary of State Mike Pompeo defends this as a legitimate policy to achieve US objectives, not a distraction. Markets, including Vietnam's stock market and the Australian dollar, are already showing some downside reaction.