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US cites forced labour concerns as grounds for new tariffs | Trade War News

The administration of US President Donald Trump has proposed new tariffs of up to 12.5 percent on imports from 60 economies after determining they had failed to curb trade in goods made with forced labour, an assertion that was rejected by US trading partners.

The proposal from the Office of the United States Trade Representative (USTR), issued late on Tuesday, comes from a Section 301 unfair trade practices investigation designed to help rebuild US President Donald Trump’s emergency tariffs, struck down by a US Supreme Court decision in February.

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Despite laws banning them, the products of forced labour are deeply embedded in supply chains across the world. European lawmakers bristle at the accusation that the region is less effective than the US at curbing the trade in such goods, with one describing the US findings as “utterly absurd”. Business leaders said the US move created more confusion for companies.

The USTR proposed 10 percent additional duties on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and Britain. The USTR said all had plans or partial schemes in place.

The trade agency said it would impose additional duties of 12.5 percent on the remaining 45 countries that it investigated. These include China, India, Nigeria, Japan, South Korea, Vietnam, Australia and New Zealand.

“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” US Trade Representative Jamieson Greer said in a statement. “This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”

The USTR said it would accept public comments on the proposed tariffs and other remedies through July 6, with a public hearing scheduled for July 7.

The announcement comes ahead of the July 24 expiration of a 10 percent temporary tariff imposed by the Trump administration on February 20, the day the Supreme Court struck down Trump’s tariffs under the International Emergency Economic Powers Act. It also shows how determined the Trump administration is about building a wall of tariffs around the US economy, the world’s largest, despite repeated setbacks in court.

After the loss in the Supreme Court, Trump turned to another law to impose temporary 10 percent tariffs globally. But those stopgap levies expire July 24. And a specialised trade court ruled last month that they, too, were illegal – though the government can continue collecting them while that case works its way through the courts.

Unjustified tariffs

The European Commission said the tariffs were unjustified and reiterated its commitment to the trade deal sealed with Washington last year.

Bernd Lange, the chair of the European Parliament’s trade committee, which voted on Tuesday to accept that trade deal, said the new tariffs were expected, but said the results of the US investigation were still “utterly absurd” given a 2024 EU law to ban imports of forced labour products.

“The impression is increasingly emerging that a tariff measure is sought first, and only then is a suitable legal justification found,” he said. However, he added that the key question would be whether the additional tariffs would exceed those agreed between both sides last July.

The US’s largest trading partner, the EU, agreed last July to accept tariffs of 15 percent on a broad range of its exports. In its report, the USTR said the EU anti-forced labour measures only came into force in December 2027 and lacked key elements.

It was unclear whether the proposed tariffs – which the US release described as “additional duties” – would come on top of levies agreed in bilateral deals signed with the US.

Britain said it was in regular talks with the US and was taking action to tackle forced labour. It added that the preferential access to US markets that it had negotiated for UK businesses remained in place.

Mexico said that goods that were compliant under the United States-Mexico-Canada Agreement (USMCA) would be exempt from the new tariffs.

Taiwan said it was “hopeful and confident” that the final results would reflect agreements already reached, securing relatively preferential treatment.

Beijing, facing 12.5 percent tariffs, said that it opposed all forms of unilateral tariffs and that there was no forced labour in China. India, confronted with the same rate, said it was engaged with Washington on the Section 301 proceedings, noting the proposed tariffs were not final.

“There will be deep concerns in the international business community that the US [forced labour law could] become a global template,” said Andrew Wilson, deputy secretary general of the International Chamber of Commerce.

“Anyone can make a claim, get a shipment impounded and the company has to prove no forced labour in supply chain.”

Certain exemptions

The USTR said it would exempt from tariffs products including energy, rare earths and some other metals, beef, coffee, certain fruits and vegetables, pharmaceuticals, organic chemicals and aircraft parts.

It also said it was proposing a textile mechanism that would allow for a certain volume of apparel and textile imports to enter the US at a reduced tariff rate, without giving details.

The ICC’s Wilson said the list of exemptions, stretching for more than 76 pages, suggested sensitivities over the potential cost-of-living hit to food and other goods with known forced-labour risks.

“It doesn’t make sense if the object of this is to enhance controls on modern slavery,” he said.

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Powell Won’t Run in 1996; He Cites Lack of ‘a Calling’ : Presidency: General tells of worries about privacy and lack of passion for political wars. He says for first time he’s a Republican and rejects accepting No. 2 spot on the ticket.

Retired Gen. Colin L. Powell, citing concerns about his privacy and a lack of passion for political combat, on Wednesday proclaimed that he would not run for President in 1996.

For the first time, Powell declared that he was a Republican. And he seemed clearly to leave open the possibility of seeking political office in the future. But he categorically ruled out accepting the vice presidential nomination next year.

In a dramatic afternoon press conference in suburban Washington, Powell, 58, said that entering the political arena “requires a calling that I do not yet hear. And for me to pretend otherwise would not be honest to myself, it would not be honest to the American people.”

“And therefore I cannot go forward,” he said. “I will not be a candidate for President or for any other elective office in 1996.”

Powell’s wife, Alma, stood at his side as he ended months of suspense about his political intentions and disappointed millions of potential supporters. His adult children, Michael, Linda and Annemarie, looked on in the packed hotel ballroom where Powell delivered his fateful verdict.

“I have spent long hours talking with my wife and children, the most important people in my life, about the impact an entry into political life would have on us,” Powell said. “It would require sacrifices and changes in our lives that would be difficult for us to make at this time.”

With the September publication of his best-selling memoirs, “My American Journey,” Powell had become a four-star American icon, the repository of the hopes of millions who dreamed that he could bind up the nation’s racial and political wounds.

But in the end, that task proved too great even for the charismatic general, who braved unfriendly fire in Vietnam and survived the ordeals of bureaucratic combat in four presidential administrations.

Powell said Wednesday he hoped he could help restore civility to American political dialogue and a “sense of shame in our society.” He also said he hoped to bring blacks back into the party by broadening the GOP’s appeal and humanizing its attempts to reform social welfare programs.

“While we’re sending out block grants, while we’re dismantling programs that have not completely satisfied everything we hoped of them, we have to concern ourselves about those who may be cut loose, and we have to be prepared to help them,” Powell said. Over the past months, “I didn’t sense there was enough consideration of that.”

“I will continue to speak out forcefully in the future on the issues of the day, as I have been doing in recent weeks,” Powell said. “I believe I can help the party of Lincoln move once again close to the spirit of Lincoln.”

But–for now–he said he would do so from outside the realm of electoral politics.

Powell largely came to his decision over the weekend and formalized it in a meeting Monday night with two of his closest friends, former Pentagon official Richard L. Armitage and former White House Chief of Staff Kenneth M. Duberstein. With a third aide, retired Col. Bill Smullen, joining in by phone, the three men sat in Powell’s formal office on the ground floor of his McLean, Va., mansion, a room dominated by his Medal of Freedom and three framed photographs of the presidents he has served–Ronald Reagan, George Bush and Bill Clinton.

Alma Powell joined the group about halfway through the 2 1/2-hour meeting, Armitage said in an interview Wednesday.

“By then, the decision was primarily made,” Armitage said. “Over these past weeks, he was up and down, he agonized. He’d go out and meet with crowds and they’d fire him up. Then he’d get back home and wonder, ‘Do I have the necessary fire in the stomach to be worthy of support of these people?’ And he found he did not,” Armitage said.

As it became clear that Powell would not run, the meeting moved quickly to a discussion of the logistics of the announcement. The four discussed various drafts of a statement, then decided that Powell should speak solely in his own words. On Wednesday afternoon, he did just that, speaking largely without reference to the note cards he had carried with him.

He had looked “deep into my own soul” before deciding not to run, Powell said, and had found that he could not summon up the “commitment and passion” he felt every day in his 35 years as a soldier.

Powell also pointedly refused to endorse any of the Republican candidates, or even the party’s eventual nominee. He answered a curt “yes” to the question of whether there were candidates in the current crop of GOP hopefuls who were unacceptable to him.

A close friend said later that Powell was referring specifically to Patrick J. Buchanan, who has harshly criticized Powell’s stands on social issues.

Powell’s decision reopens a presidential contest that had been largely frozen for the last two months as he flirted with running.

Within an hour of Powell’s announcement, House Speaker Newt Gingrich (R-Ga.) said that the former general’s withdrawal made it more likely that he would enter the race. Gingrich said he would think about it over the next several weeks and make a decision after the current federal budget deliberations are finished but before the Dec. 15 deadline for entering New Hampshire’s primary.

Powell’s withdrawal was particularly welcome news at the White House and at the headquarters of GOP presidential front-runner Sen. Bob Dole. In a statement, Dole praised Powell’s “outstanding character and leadership” and expressed pleasure that he had joined the Republican Party.

At the White House, aides showed unusual discipline in not admitting that they felt a huge sense of relief at not having to face Clinton’s worst nightmare–a black, centrist, Republican military hero–in the general election next year.

“Everyone wants some hook to say there was a sigh of relief at the White House–but you’ll have to do it on your own,” said White House Press Secretary Mike McCurry.

He added that Clinton “understands the decision to run for President of the United States is one of the most difficult decisions any human can make. He respects the general and respects the general’s right to make that decision.”

Powell met with the press for 40 minutes at the Ramada Plaza hotel in Alexandria, Va., a few miles down the George Washington Parkway from the Pentagon, where Powell made history by becoming the first African American and youngest chairman of the Joint Chiefs of Staff.

His appearance was marked by the good humor, military carriage and unshakable poise he displayed in private meetings with presidents, kings and prime ministers and in public briefings on the American military operations he directed.

He expressed gratitude to the thousands of citizens who urged him to run. “It says more about America than it says about me. In one generation, we have moved from denying a black man service at a lunch counter to elevating one to the highest military office in the nation and to being a serious contender for the presidency,” he said.

Powell drew laughs when asked whether his wife shared his enthusiasm for the Republican Party. “Next!” he boomed. He also fended off a question about whether he had been bothered by published reports that his wife was under treatment for depression.

“It is not a family secret,” he said. “It is very easily controlled with proper medication, just as my blood pressure is sometimes under control with proper medication.”

For her part, Alma Powell made clear her concerns about her husband’s safety should he become a candidate. She and the general denied that fears of assassination were a factor in his decision not to run, but the final call was not made until Monday night, the day slain Israeli Prime Minister Yitzhak Rabin was buried in Jerusalem.

Had he been elected, Powell said, his priorities in office would have been: “Show leadership. Be a conciliator. Move the government forward toward less government. . . . Try to inspire people. And try to restore a sense of family, restore a sense of shame in our society, help bring more civility into our society.”

Powell said he regretted the disappointment he caused those who enthusiastically promoted his candidacy.

“I am deeply, deeply appreciative of that support, I’m deeply appreciative of the time and talent and energy you put into it. I’m sorry I disappointed you, but I hope you will see that in the next phase of my life I will continue to serve the country in a way that will justify the kind of inspiration and enthusiasm and support you sent my way this time around,” Powell said, addressing the several dozen supporters who attended the press conference and millions more watching on television.

He said he understood the “down and dirty” of American politics and said they were a proper test of a potential leader. He said he was not afraid of that “test of fire,” but that he was not yet ready to face it.

Among those watching on television were about half a dozen disheartened volunteers at the draft-Powell headquarters in the Crenshaw district in Los Angeles. The group, which had just opened the office last week, vowed to launch an effort to change Powell’s mind. Through letters, phone calls and other means, they hope to persuade the retired general “to report for duty as a candidate for the presidency,” said Powell backer Ron Weekly.

Times staff writers Sam Fulwood III in Washington and Erin Texeira in Los Angeles contributed to this story.

* LOCAL REACTION: General’s Orange County kin pleased with his decision. A17

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