This is one outlet's own report from Fortune — the article as it was filed.
AIPROPX ReportFortune · 3h ago
New tariffs could allow Trump to make levies permanent without going to Congress — ‘he’s trying every side door and every…
The Trump administration has imposed double-digit tariffs on more than 60 countries , using a legal justification that permits the president to levy import taxes and other sanctions against countries found to engage in “unjustifiable,” “unreasonable” or “discriminatory” trade practices.
The new tariffs announced in recent days take effect just as temporary 10% worldwide tariffs expired , and critics say they are less about cracking down on forced labor than they are a way to replace those tariffs. The expired tariffs were themselves a temporary replacement for worldwide tariffs the Supreme Court struck down in February.
The tariffs were levied on countries that the U.S. says either don’t have or don’t effectively enforce a forced-labor import ban. The affected countries , which account for 99% of U.S. imports, were quick to protest, calling the Trump administration’s claims unfounded and arbitrary, as nations with vastly different records on forced labor received the same tariff level. The U.S. spent four months investigating but gave few details on how it arrived at the tariff rates, which are either 10% or 12.5%.
Sidestepping Congress
The tariffs were levied under Section 301 of the Trade Act of 1974 on countries that the U.S. determined had failed “to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.”
During President Donald Trump ‘s first term, he cited Section 301 to impose sweeping tariffs on Chinese imports amid a dispute over the sharp-elbowed tactics Beijing was using to challenge America’s technological dominance. The U.S. is also using 301 powers to counter what it calls unfair Chinese practices in the shipbuilding industry.
“The 301s allow a permanent tariff without going to Congress to settle the dispute,” said Barry Appleton, a law professor and co-director of New York Law School’s Center for International Law. “That’s what all of this is about. The president doesn’t want to knock on the front door of Congress, so he’s trying every side door and every unlatched window to get in.”
Little evidence that countries failed to enforce import bans
The office of the United States Trade Representative (USTR) said it consulted with all 60 economies under investigation and held two rounds of public hearings, elicited more than 2,100 public comments, and had “engagement” with its trading partners about what they were doing to combat forced labor bans.
It didn’t detail its talks with the countries, saying those were confidential. Experts say it is fairly straightforward to investigate whether a country has a ban or not, but it is difficult to determine the government’s exact rationale for each country’s failure to enforce import bans.
“There’s not a lot of hard evidence there,” said Scott Lincicome, vice president for general economics and trade policy at the Cato Institute, a libertarian think tank. “It’s pretty laughable on its face to think that a country like the ones in Europe or in Norway or Switzerland aren’t doing enough to police forced labor.”
And even if countries do enact and enforce the forced-labor import bans the U.S. wants, they would still need to prove that they’re enforcing them to Washington’s satisfaction before the tariffs would be removed, said lawyer Patrick Childress, a partner at Holland & Knight and a former U.S. trade official.
“This suggests that no short-term path for countrywide relief from the new Section 301 tariffs will be available,” he said.
Countries and industries reject the forced labor argument
Many countries have pushed back against the Trump administration’s findings.
Brazil, which faces a 12.5% forced-labor tariff, called the U.S. move “arbitrary and unjustified.” The U.S. “chose to manipulate an issue of great importance to human rights and the struggles of workers worldwide in order to accuse 59 countries and the European Union of unfair practices,” it said in a statement.
Australia also questioned the justification for its 12.5% tariff.
“We believe that amongst all of the countries in the world, Australia does take the issue of slavery, modern slavery, seriously, and will continue to do that,” Trade Minister Don Farrell told reporters in Adelaide.
Carve-outs have riled some industries. The National Council of Textile Organizations (NCTO), which describes itself as the voice of the American textile industry, protested a mechanism that exempts the Section 301 tariffs for textile and apparel imports from Bangladesh, Cambodia, Indonesia, and Malaysia based on those countries’ imports of U.S. cotton and textiles.
“No other industry has been more disadvantaged by forced labor than the U.S. textile industry, which employs 453,000 workers and has lost 41 plants over the past two plus years,” NCTO chief executive Kim Glas said in a statement. “We remain strongly concerned that USTR’s textile mechanism will harm the very domestic manufacturers the administration seeks to help.”
US forced-labor bans don’t always work
The U.S. has two major pieces of legislation related to forced-labor import bans. The Tariff Act of 1930 gave Customs and Border Protection the authority to seize shipments where forced labor was suspected and to block further imports. But it had a big carve-out: If there was “consumptive demand,” meaning there wasn’t sufficient supply to meet domestic demand, imports were allowed regardless of how they were produced. The Trade Facilitation and Trade Enforcement Act that took effect in 2016 eliminated that loophole.
In 2021, the Uyghur Forced Labor Prevention Act was passed. It blocks imports from China’s Xinjiang region unless businesses can prove the items were made without forced labor.
But goods made with forced labor can still make it into the U.S. In 2015, an Associated Press investigation found that slave l...
TrumpCongressSectionTrade ActThe TrumpSupreme CourtU.SDuring President Donald TrumpChineseBeijingAmerica’s
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