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      in US Politics

      Corporate America won’t stop Trump’s tariffs. Here’s why | Alex Bronzini-Vender

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      Few historical analogies exist for Donald Trump’s newly announced tariffs. The investment bank Evercore estimates that the so-called “liberation day” announcement has raised the weighted average US tariff to 29% – its highest rate since 1900. To call it a generational action would be an understatement; my grandmother was born in 1939.These tariffs, if they remain in place, will raise prices, eliminate jobs and shrink retirements. No one will pay for them more dearly than American workers. Yet a shock to capitalism inevitably raises the question of whether, and how, capitalists will respond. Faced with Trump’s tariffs, what will the US’s business class do?Some commentators have hoped that, once the effects of Trump’s economic misrule become apparent, executives will finally turn on the Maga movement. But the answer, as during Trump’s previous tariff scares, is likely to disappoint. The Chamber of Commerce, National Association of Manufacturers, and International Dairy Foods Association have each issued strongly worded statements against Trump’s trade action. Others are likely forthcoming. But those words are unlikely to become meaningful action, for it is simply not in the business lobby’s nature to fight the Republican party.Unlike much of the developed world, the US lacks a single, representative organization for big business. Barring extraordinary initiative by political actors, or moments of deep and protracted crisis, unified and cross-sectoral corporate lobbies rarely appear in American history. The National Association of Manufacturers and the Chamber of Commerce began as initiatives of presidents William McKinley and William Howard Taft, respectively; the Business Roundtable, founded through a merger of two union-busting business groups in 1972, stands as a rare business lobby organized by business itself.If these organizations have a difficult time coming together, they have an even harder time sticking together. The roundtable and the chamber experienced their greatest momentum during the economic turbulence of the 1970s: at last, their managers were able to unite the otherwise fractious American business community under the banner of fighting organized labor and its New-Dealer allies within the Democratic party. But by the middle of Ronald Reagan’s presidency, those enemies had been vanquished – and the chamber and roundtable hemorrhaged membership in turn.Business organizations never regained the command of American capitalism they had won in the late 70s and early 80s. The Chamber of Commerce has maintained stature only by becoming, essentially, an all-purposes lobbying firm. Its primary function is to receive contributions from industries attempting to obscure their hand in pushing politically unpopular causes: tobacco seeking to shield itself from liability, the auto industry seeking to relax safety standards, the health insurance sector seeking to stall healthcare reform, etc.Though the chamber and roundtable briefly stepped into more activist roles during the disruptions of the Tea Party, their success was, at best, mixed. At once, they found themselves dueling against the oil, gas and utilities sectors, each of whom fervently backed rightwing insurgents. By 2014, they had largely eliminated the Tea Party’s beachhead in Congress. Even so, they failed to repel the advance of Trump during the 2016 primaries; nor did they manage to sap the influence of the Freedom Caucus, today a king-making group among House Republicans.Though business organizations managed to significantly shape Trump’s 2017 Tax Cuts and Jobs Act, they notably failed to shape his administration’s 2018 trade war. Rather than mount a united front against Trump’s tariff regime, nearly 4,000 firms attempted to individually lobby the office of Robert Lighthizer for individual exemptions for their imports of interest. This, the political scientist Jack Zhang explains, had the ironic effect of overwhelming the United States trade representative’s office, and crowding out most lobbyists: few ultimately received exemptions, while the rest continued paying the cost of high tariffs.That period’s patterns are telling: American business, given the weakness of its coordinating institutions, is essentially incapable of coordinating significant challenges to the Republican party’s governance. A previous generation of corporate leadership might have met a shock of Wednesday’s magnitude with a coordinated response felt at all levels of American society – whether through lobbying efforts in Washington or advertisements in local newspapers. But American business is too disunited to mount similar campaigns today. “The pursuit of individual self-interests,” as Zhang noted in 2020, “left none to defend the public goods associated with a free and open market between the US and China.”That phenomenon is a persistent feature of the Trump era. The chamber’s boycott of campaign contributions to the Republican party after the January 6 insurrection lasted little more than two months. And the agricultural lobby, once a powerful pro-immigration voice on Capitol Hill, has all but abandoned its public advocacy for immigrants: organizing on the issue, where it exists, is done through quiet lobbying behind closed doors. If history is any guide, then, there will be no meaningful corporate break with the Republican party.“We are living through the nightmare edition of ‘Great Men Make History’,” wrote the leftwing theorist Mike Davis shortly before his death in 2022. “Unlike the high Cold war when politburos, parliaments, presidential cabinets and general staffs to some extent countervailed megalomania at the top, there are few safety switches between today’s maximum leaders and Armageddon.”Our moment, as Davis observed, is the apogee of a long-brewing structural crisis of American liberalism, where even the mechanisms that once aligned state policy with corporate interests have fundamentally broken down. Whether among executives, lobbyists or university trustees, an elite-led backlash to the Trump administration – on trade, immigration, the rule of law or anything else – is not forthcoming. Only an organized working class, then, can resist Trump.

      Alex Bronzini-Vender is a writer living in New York More

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      in US Politics

      Senior Trump officials give conflicting lines on tariffs after markets turmoil

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      Senior officials within Donald Trump’s administration gave conflicting messages on Sunday about the US president’s global tariffs that have caused a meltdown in stock markets, prompted warnings of a world recession and provoked rare expressions of dissent from within his Republican party.Cabinet members fanned out across Sunday’s political talk shows armed with talking points on Trump’s 10% across-the-board tariff on almost all US imports, with higher rates targeted at about 60 countries. If the intention was to calm nerves with a clear statement of intent, then it backfired as top officials gave starkly contrasting signals.Howard Lutnick, the billionaire commerce secretary, struck an aggressive note on CBS News’s Face the Nation in which he portrayed the tariffs as here to stay. Asked whether there was a chance that tariffs would be postponed to allow countries to negotiate a deal with Washington, he replied: “There is no postponing – they are definitely going to stay in place for days and weeks, that is sort of obvious.”Lutnick added that Trump intended to “reset global trade”.“The president has made it crystal, crystal clear,” he said.However, two other cabinet members gave the opposite take, suggesting that negotiations with individual countries were very much on the cards. Scott Bessent, the treasury secretary, told Meet the Press on NBC News that Trump had “created maximum leverage for himself, and more than 50 countries have approached the administration about lowering their non-tariff trade barriers, lowering their tariffs, stopping currency manipulation”.The agriculture secretary, Brooke Rollins, echoed Bessent by flagging up possible talks. “We’ve got 50 countries that are burning the phone lines into the White House,” she told CNN’s State of the Union.The scale of Trump’s tariffs have sent shockwaves around the world, catching US investors as well as top Republican politicians by surprise. In just two days last week, more than $6tn was wiped off Wall Street’s market value.Trump told US consumers in a post on his Truth Social network to “hang tough, it won’t be easy, but the end result will be historic”. Yet as he spent the weekend golfing at his Mar-a-Lago resort in Florida, his unprecedented tax increase goaded senior Republicans to speak out, in a vanishingly rare display of criticism of their leader.Trump’s former vice-president, Mike Pence, denounced the tariffs as the “largest peacetime tax hike in US history”. Thom Tillis, the Republican senator from North Carolina, said: “Anyone who says there may be a little bit of pain before we get things right needs to talk to farmers who are one crop away from bankruptcy.”Ted Cruz, a senator from Texas, warned of a “bloodbath” for Republicans in the 2026 midterm elections should the tariffs force the US into recession.Democrats are detecting opportunity in such unusual challenges to Trump from within his own party. Adam Schiff, the Democratic senator from California, floated on Meet the Press what sounded like a draft campaign strategy for the midterms.“If we head into a recession, it will be the Trump recession,” he said. Of Trump, Schiff also said: “He’s wrecking our economy.”Tim Walz, the governor of Minnesota who ran as the Democrats’ vice-presidential candidate in last November’s defeat to Trump, called the tariffs “really, really terrifying” on State of the Union. He warned that if you punish dependable trading partners like Mexico and Canada, “they don’t come back overnight.”As the tariffs kick in, analysts are increasingly pointing to the chances of a recession, which is normally assessed as being two consecutive quarters of falling GDP. The head of economic research at JP Morgan, Bruce Kasman, has raised the probability of global recession to 60%, a figure that he included in a memo titled There Will Be Blood.Larry Summers, the US treasury secretary during Bill Clinton’s presidency, called the tariffs the “biggest self-inflicted wound we’ve put on our economy in history”. Speaking on ABC News’s This Week, he gave his own estimate of the total loss to US consumers at $30tn – equivalent to doubling petrol prices at the pump.skip past newsletter promotionafter newsletter promotionTrump’s cabinet members attempted to use rhetorical devices as a way of assuaging rattled investors and consumers. Rollins said the markets weren’t crashing – they were “adjusting”.Asked what he would say to Americans close to retirement who had just watched their lifetime savings drop significantly in recent days, Bessent called that a “false narrative”.“Americans who want to retire right now, they don’t look at the day-to-day fluctuations of what’s happening,” Bessent said.Bessent’s answer was coloured, perhaps, by his own net worth, which has been put at more than $521m.There were moments of the surreal in the exchanges between Trump’s top officials and the political show hosts. Asked by CNN’s Jake Tapper why 10% tariffs had been placed on Heard Island and McDonald Islands, which are populated by penguins near Antarctica but no humans, Rollins said: “I mean, come on, whatever. Listen, the people that are leading this are serious, intentional, patriotic – the smartest people I’ve ever worked with.”Tapper then pushed back on the agriculture secretary’s justification for the 20% “reciprocal” tariffs that have been imposed on EU goods sold to the US. Rollins said that Honduras bought more pork from the US than the entire European Union.Tapper pointed out that the EU had tight restrictions on hormone use in livestock production. The EU banned use of synthetic hormones in 1981, and blocked imports of animals that had been treated in that way.Rollins then accused the EU of using “fake science” to prohibit US products. “That’s just absolute bull,” she said. “We produce the safest, the most secure, the best food in the world.” More

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      in UK Politics

      Trump tariffs live: Starmer warns ‘world as we knew it has gone’ – while EU readies retaliatory measures

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      Starmer ‘unhappy’ about Trump tariffs, according to ministerSir Keir Starmer has said the “world as we knew it has gone” after US president Donald Trump slapped sweeping tariffs on dozens of trading partners including the UK.Sir Keir has said that his government stands “ready to use industrial policy to help shelter British business from the storm.”It comes after the US president put a 10 per cent tariff on all UK goods exports to America, including a 25 per cent tariff on all British carmakers.Labour minister Darren Jones said that a trade war was in “no-one’s interests” and said that globalisation as we’ve known it has come to an end. However Reuters has reported that the EU is considering retaliatory tariffs on $28 billion worth of US imports. A list of US goods that could be slapped with tariffs will reportedly be presented to EU countries late on Monday. Meanwhile Jaguar Land Rover said it was suspending shipments to the US while it considers how to mitigate the cost of Mr Trump’s tariffs.Taiwan’s president offers zero tariffs as basis for US negotiations Taiwan’s President Lai Ching-te has offered zero tariffs as the basis for talks with the US, pledging to remove trade barriers rather than imposing reciprocal measures and saying Taiwanese companies will raise their US investments. President Donald Trump announced across-the-board import tariffs on Wednesday, with much higher duties for dozens of trading partners, including Taiwan, which runs a large trade surplus with the U.S. and faces a 32 per cent duty on its products.The US tariffs, however, do not apply to semiconductors, a major Taiwanese export.In a video message released by his office after meeting executives from small and medium-sized companies at his residence, Taiwan’s president said given Taiwan’s dependence on trade the economy would inevitably have a hard time dealing with the tariffs, but that he thought the impact could be minimised.”Tariff negotiations can start with ‘zero tariffs’ between Taiwan and the United States, with reference to the U.S.-Canada-Mexico free trade agreement,” Lai said.Taiwan’s cabinet is considering what large-scale agricultural, industrial and energy purchases to make from the United States, while the defence ministry has already put forward its weapons purchase plans, he added.”All purchases will be actively pursued,” Lai said.Holly Bancroft6 April 2025 15:44India does not plan to retaliate against US tariffs – reports India does not plan to retaliate against US president Donald Trump’s 26 per cent tariff on imports from the Asian nation, an Indian government official has told Reuters. Prime Minister Narendra Modi’s administration has looked into a clause of Trump’s tariff order that offers a possible reprieve for trading partners who “take significant steps to remedy non-reciprocal trade arrangements”, said the official, who declined to be named as the details of the talks are confidential.Reuters reported last month that New Delhi is open to cutting tariffs on U.S. imports worth $23 billion.( More

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      in US Politics

      Trump’s tariffs may be perilous for small, heavily indebted countries in global south

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      “This is very messed up. If Trump wants Cambodia to import more American goods: look, we are just a very small country!”Khun Tharo works to promote human rights in the Cambodian garment sector, which employs about 1 million people – many of them women.“I think they are very concerned about their jobs, and I think they are very concerned about their monthly pay cheque. And that has significant effects on the livelihoods of their dependent family,” says Tharo, programme manager at the Centre for Alliance of Labor and Human Rights (CENTRAL), a Cambodian workers’ rights organisation.One of the most wilfully destructive aspects of Donald Trump’s shock and awe trade policy is the imposition of punitive tariffs on developing countries across Asia, including rates of 49% for Cambodia, 37% for Bangladesh, 48% for Laos.For decades Washington had championed economic development through trade. Now, at the same time as slashing overseas aid budgets and retreating from its role in supporting developing nations, it is ripping up that idea entirely.In its place, Trump intends to impose his will on the US’s trading partners. Some are all but powerless to exact concessions, given their small size, and dependence on the mighty American market. Cambodia hastily offered to cut tariffs on US goods on Friday, in a bid to propitiate Washington.Contrary to Trump’s bombast about the US being “pillaged”, the tariffs are not in any sense “reciprocal”.Instead, they relate to the size of the US goods trade deficit with each country, and the value of its exports. (Side note: the 10% paid by the UK has nothing to do with Labour’s negotiating flair – it just came out of the fact that Britain buys about as much stuff from the US as it sells the other way).Ironically, many of the countries in the global south hit by Trump had benefited from preferential schemes offering low or zero tariffs, precisely because building up exporting capacity is an accepted path to development.Alice Oyaro, the chief executive at the charity Transform Trade, which works with producers in some of the worst-hit countries, says: “Our biggest concern is that the additional costs are pushed down to those in the supply chain who are least able to pay. Small farmers exporting everything from green beans to cocoa, and women workers in Bangladeshi factories are already finding it hard to make ends meet. They will see their incomes squeezed even more.”Tiny Sri Lanka, which has an economy 0.3% of the size of the US’s, faces a 44% tariff despite being bailed out by the International Monetary Fund two years ago and continuing to negotiate debt restructuring deals with its creditors.“It’s a highly vulnerable situation,” says Ajith D Perera, the chair of the Asia Pacific Trade Agreement (APTA) Chamber of Commerce and Industry. “Sri Lanka will lose export income and see a hit to GDP and employment – and that comes at a time when it is just coming out of bankruptcy.”He fears the scale of the tariffs could compromise Sri Lanka’s ability to meet the conditions of the IMF bailout deal. Trade is meant to be a key prop for growth, as it rebuilds its shattered economy.“I think the fundamentals have been challenged by the US decision,” he says. “25% of Sri Lanka’s exports go to the US and 70% of that is garments. I think the government needs to start discussions with the IMF immediately.”As his warning suggests, there is a risk that a grim side-effect of Trump’s trade war will be to exacerbate the debt crises already hitting heavily indebted poorer nations.Even countries that have escaped the most punitive tariff rates could still be hit hard if the prospect of a global downturn depresses the value of the commodity exports on which many rely.Keir Starmer and other leaders of the developed world have been preoccupied with their own domestic responses since Wednesday’s bombshell briefing in the White House Rose Garden.But the severity of the probable impact for the global south calls for a concerted approach, too – albeit one that will have to bypassWashington.Most of the hardest-hit countries can already trade tariff-free with major markets under projects such as the EU’s Everything But Arms programme and the UK’s Developing Countries Trading Scheme, which are designed to help the poorest nations to develop through trade.But if Trump’s tariffs stick, multinational brands focused on the US are likely to switch production rapidly to countries hit with lower rates. One garment buyer in India told me on Friday she was already hearing of factory owners in Bangladesh being told by US brands that they would now be manufacturing their sweaters in Peru, which has a rate of just 10%.The social dislocation in some of these hardest-hit economies could be profound, if such rapid shifts result in mass layoffs.And the case for debt write-offs, already clear, may become all the more pressing, if the resulting the looming global downturn sweeps vulnerable countries over the edge.The fact that the British government’s deep cuts to the aid budget now sit alongside a probable global economic downturn and heavy US penalties for exporters in developing countries makes that decision all the more shameful.Back in Cambodia, Tharo says: “The industry right now seems to be in a little bit of a hectic situation. The government is also extremely worried because they are not seeing any alternative markets at the moment. And we don’t have significant goods to be exported to any other country.“Trump doesn’t care,” he sighs. More

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      American corporations didn’t want to diversify, anyway

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      View image in fullscreenAt Ford Motor Company, the moral stock-taking began with a letter.“This is an extraordinary moment in our history,” Bill Ford, the company’s executive chair, and Jim Hackett, its CEO, wrote to employees on 1 June 2020. It had been three months of upheaval since the coronavirus pandemic began and the company first suspended production at its manufacturing sites. By mid-May, more than 87,000 people in the United States had died from the virus. Then, on 25 May, the video of Derek Chauvin kneeling on George Floyd’s neck for nearly nine minutes, ultimately killing him, was seared into Americans’ consciousness.Even in the midst of a global pandemic, as systemic inequities around healthcare and wealth and education were thrown into sharp relief, the world saw how deadly everyday injustices remained. “All at once, we are grappling with a public health crisis that has claimed hundreds of thousands of lives, an economic shock that has forced us to adapt on the fly, and social upheaval that has challenging all of us to think and act differently,” Ford and Hackett wrote. Globally, people wanted to do something, but they did not know exactly what. There were online gestures: Black squares on Instagram, direct messages of apology to Black friends, well-designed slides with digestible facts about systemic racism. But, as the video spread, millions flooded the streets as well. They rallied in Chicago, Minneapolis, Portland and Washington DC; and they protested overseas in London and Sydney and the Canary Islands. The actions were bolstered by calls to finally address the disparities that made the nation so inequitable.C-suites and boardrooms and universities couldn’t look the other way. Colleges and hospitals began renaming buildings; activists toppled statues and busts of traitors and racists, politicians took down others; and across the country, institutions were pushed to evaluate how their policies had locked certain people out of the American dream. But now, as the Trump administration has brought back to the White House its war against a diversifying workforce, the federal infrastructure and a critical history of the US, corporations are dropping diversity and equity programs as quickly as they created them.How did we get here? Why were so many companies – from Walmart to Paramount to Victoria’s Secret – willing to roll over on their diversity goals after the promises they made in 2020 to uproot systemic racism and transform the nation? Were they all just paying lip service? In many ways, the programs were never intended to radically change the workplace in the first place – they were intended to appease workers and dampen discontent. What we’ve seen since 2020 is not new. It’s a reversal rooted in the policies the US created decades ago, when it cast aside the goal of addressing a legacy of discrimination for the vague idea of diversity – an idea that was always destined to fail, and an idea many corporations never truly believed in.Superficial actionsFor employees at Ford, which was founded in Detroit, where nearly three-quarters of the city’s residents are Black, there was nothing academic about the issues highlighted in 2020. The pandemic hit the city as the plague of racism had left it economically distraught for decades; healing the disease systemic discrimination had left would require effort and intention. “There are no easy answers. We are not interested in superficial actions. This is our moment to lead from the front and fully commit to creating the fair, just and inclusive culture that our employees deserve,” Ford and Hackett wrote.Ford’s first step to healing was a series of conversations with staff to better understand how they felt. They would launch employee resource groups to ensure workers believed they could be their whole selves at the office. “We know that systemic racism still exists despite the progress that has been made,” the Ford executives wrote. “We cannot turn a blind eye to it or accept some sense of ‘order’ that’s based on oppression.”If that sounds familiar, it’s because offices across the country were undergoing similar soul-searching efforts. Within a year of Floyd’s murder, companies had pledged at least $50bn to support racial justice and advance equity and by 2023 that number had jumped to more than $340bn, according to a report by the McKinsey Institute for Black Economic Mobility. Companies such as Apple, Facebook and Pfizer committed to spending externally. Bank of America pledged $15bn to expanding low- and middle-income homeownership; Netflix, PayPal and Nike deposited millions in Black-owned banks; and other companies gave to organizations such as the Equal Justice Initiative. Corporations committed to internal changes, too: they set diversity goals and launched initiatives to try to meet them; they hired chief diversity officers; they held mandatory – if sometimes clumsy – anti-discrimination trainings. Most of these tools had existed in some form before, but amid public outcry, they were pushed to the foreground.The problem was that even when companies actually wanted to help, they often launched their efforts haphazardly. When companies jump to solutions before understanding the desired outcomes, they make rushed decisions, said Eddy Ng, a business professor at Queen’s University in Canada. “Without a clear plan, we go buy more training. People don’t like that,” Ng said. Company leaders had little idea how to fix the structural issues baked into their DNA, so they went with the things that sounded good. “It’s like you go grocery shopping with 100 bucks, but you don’t have a shopping list. You’re going to buy chips and cookies,” Ng told me.Chips and cookies can make a person feel full, they can hold someone over, but eventually there’s a crash – and that person will be left wondering why they have not actually had a full meal; why they are not satisfied. Within weeks, it seemed, companies had built out their diversity, equity and inclusion plans. But not everyone was convinced by them. “Someone like me might say, ‘let’s wait and see if they mean it,’” said Cedric Dawkins, an associate professor of management at York University who studies business ethics. Marginalized communities have felt the sting of America’s empty promises before.Progress in the US is always met with pushback. During Reconstruction, the so-called “Redeemers” – who sought a return of white supremacy – argued that federal support for recently enslaved African Americans was a threat to their liberty. The civil rights movement was immediately met with lawsuits that would limit its desired effects on voting, education and labor. In that context, the only real measure of an organization’s commitment to justice is whether they keep pushing forward with their reforms in spite of any backlash.When corporations launched their plans, they felt like drastic measures, Ng said: “Instead of actually having clear guidelines and goals and outcomes in terms of what they wanted to achieve over the five-year period.” Now, as we come to the end of the five-year period – and companies begin to roll back their diversity efforts, vindicating those who were waiting for the other shoe to drop – one question remains: what was it all for?The backlash beginsOn 6 March 1961, then president John F Kennedy signed executive order 10925 – which created the president’s committee on equal opportunity. “Americans who are members of minority groups have often been unjustly denied the opportunity to work for the government or for government contractors,” Kennedy wrote in his signing statement. He directed the committee to launch a study of government employment practices that would examine the “status of members of minority groups in every department, agency and office of the federal government”. The report would lay down a marker, Kennedy hoped, by which Americans could measure future progress. “I have no doubt that the vigorous enforcement of this order will mean the end of such discrimination.”View image in fullscreenTypically, Kennedy’s order is where histories of affirmative action or race-conscious employment practices begin – after all, it’s the first time the idea of affirmative action as we understand it today emerged. But federal action to address discrimination in the workforce actually stretches back to at least Franklin D Roosevelt’s New Deal, and one New Deal policy in particular: the 1935 Labor Relations Act. The act protected the rights of employees at private companies to better working conditions. If a company engaged in unfair labor practices, employees were “entitled to affirmative action as a remedy to make the employee whole”, said D Caleb Smith, a labor historian at Mount Holyoke College. Those remedies could look like job reinstatement or back-pay. Essentially, the provision was a general remedy to employment discrimination.But the Labor Relations Act was also a mixed bag. The National Urban League and NAACP opposed the legislation because it provided for closed-shop provisions that allowed unions and employers to exclude workers from union membership and apprenticeship programs. Union race discrimination had historically limited Black participation in the workforce: in 1930, for instance, just 3% of the 3,392,800 trade union workers in the US were Black.Still, it was a starting point, and over time, additional protections were added. In May 1943, executive order 9346 reconstituted the fair employment practices committee, which processed 8,000 discrimination complaints in its three years of existence. And in 1947, the Taft-Hartley Act prohibited the closed-shop provision from the New Deal policy. By 1960, however, affirmative action still did not have a formal definition. “It is implied that it’s the intent to improve working conditions to create opportunity for underrepresented minority groups,” Smith said. Kennedy helped provide some unity of definition.Kennedy’s order created one of the earliest affirmative action programs, the Plans for Progress Program, which encouraged companies to develop plans that addressed discrimination and underrepresentation of minorities. Within the first few months, the committee on equal opportunity reported that the program was in full swing. Agencies had begun designating compliance officers and developing training seminars; they had studied best practices for compliance reporting; and they had launched outreach to contractors and the general public. But “the Plans for Progress Program is largely seen as a performative publicity endeavor,” Smith said. It was done in good faith, he added, but it was hampered by the same problems other compliance agencies had: it was understaffed, underfinanced and could not exercise its full authority. For its imperfections, though, “some historians will point to it as a positive that provides companies a model for desegregation and implementing equal employment opportunity,” Smith said.By January 1964, after Kennedy’s assassination, Lyndon Johnson took over the reins and carried out Kennedy’s vision. In a speech to new corporate members of the Plans for Progress program, Johnson announced that it had largely been a success. More than 100 major corporations – representing 6 million workers – had bought into the program, he told those assembled. The ratio of white salaried employees to non-white salaried employees at 91 companies had dipped from 65 to one to 60 to one. “Most significant is the fact that these jobs are not all at the lowest level – Negroes and other minority group Americans are being placed and promoted to positions of responsibility,” Johnson gushed. “This was not accomplished by displacing other workers – rather it was the result of conscious adjustments in personnel practices making merit and ability the only real tests – practices that strengthened the individual companies, and, as a result, strengthen our entire economy.”But some companies and federal contractors began creating measures to subvert the new federal rules, Smith told me. They implemented new tests for employees and had segregated seniority lines – white people occupied positions of power; contrary to the pronouncement, Black people were still often consigned to the lower rungs of industry. After Johnson signed the 1964 Civil Rights Act – and executive order 11246 a year later, which created the office of federal contract compliance to ensure contractors and subcontractors were complying with requirements to “safeguard equal employment” through affirmative action programs – the backlash was almost immediate.White people began claiming the programs were reverse discrimination and sued in federal court over college admissions, hiring and promotion practices. The supreme court upheld certain provisions of affirmative action programs – such as diversity as a compelling interest – but argued that quota systems designed to account for a legacy of discrimination in the US were a bridge too far. The Reagan administration sought to eliminate affirmative action altogether, and was surprised when corporations fought back. Companies such as Merck had begun to believe in their affirmative action policies – a new crop of workers brought new ideas and introduced products to new markets. It was great development philosophically – for those who cared about addressing a legacy of discrimination – and financially, for those who were more ambivalent. As Julian Mark noted in the Washington Post, a survey of 128 Fortune 500 companies revealed that an overwhelming majority, 95%, would keep their affirmative action policies regardless of Reagan’s policy.Reagan was ultimately unsuccessful – in part because he was largely alone in his efforts, even among Republicans. Still, his push to eliminate affirmative action programs led many corporations to settle for policies aimed at promoting a diverse workforce rather than addressing injustice. Such policies, they believed, had less legal exposure. The result was a new crop of watered-down programs that were a far cry from those that preceded them.Some conservatives agreed with Reagan, and as the decade wore on, became a loud contingent of the Republican party. Through the 1980s and the 90s, Republicans began using judicial appointments to transform the federal bench and pursue litigation to reshape civil rights law – warping its meaning. They argued that even watered down affirmative action programs and civil rights measures had gone too far; they wanted them eliminated altogether. Conservatives lionized the leaders of California’s Proposition 209, which banned affirmative action in public education and employment in 1996. The California Civil Rights Initiative “is the beginning of the new civil rights revolution in America; a revolution that promises to unite all America under a banner of hope and freedom”, Gay Hart Gaines, the former president of GOPAC, the Republican donor group, said at the time. Philanthropic organizations such as the Bradley Foundation, Scaife Foundations and Searle Freedom Trust bankrolled challenges to race-conscious admissions at universities and efforts that ultimately gutted the Voting Rights Act. Reagan lost his initial battle, but conservatives saw it as the first shot fired in a longer war – a war they believe, in 2025, is paying off.The capitulationLess than two months after Hackett, the Ford CEO, sent the letter lambasting systemic racism to the company’s employees, he stepped down from his position. Jim Farley, an executive from within, replaced him. In August 2024, ahead of the election, Farley wrote a letter of his own to the staff about diversity, equity and inclusion.“As we work to build an even brighter future, we are mindful that our employees and customers hold a wide range of beliefs, and the external and legal environment related to political and social issues continues to evolve,” Farley wrote. It was a very elaborate way of telling staff that they would be walking back diversity policies because the political winds had shifted. George Floyd’s murder had receded from the national consciousness. The Republican party had seized upon the language of DEI and turned it into a catch-all symbol for the ways the US was diversifying and becoming less tolerant to sexism, racism, ableism and homophobia.The company would no longer comment on “polarizing issues”. Its philanthropic arm’s mission changed from “[providing] access to resources and opportunities that build equity and empower underserved and underrepresented communities to reach their highest potential” to “[partnering] with communities to move people forward and upward”. And Ford would stop contributing to external culture surveys such as the Human Rights Campaign’s Corporate Equality Index. The fresh look at Ford’s policies said nothing – save for vague allusions to the benefits of diversity – about systemic racism. Hackett’s earlier declaration that Ford would not “turn a blind eye” to systemic racism seemed but a memory.Within days of taking office, Donald Trump signed an executive order that would eliminate Johnson’s civil rights order. The order directed the office of federal contract compliance to stop “promoting diversity” and holding contractors responsible for “affirmative action”. To Smith, the administration’s early actions amount to “a blatant effort in order to not only uphold the white power structure, but to remove any government responsibility to uphold the rights of individuals of color, specifically Black people”. It is the fruit of a conservative movement that has been trying to reverse course ever since the government began taking seriously efforts to protect the rights of Americans regardless of race, sex, religion or national origin.In 2020, hundreds of private companies pledged to change their culture – to use their power and influence and, most importantly, money, to re-shape American society toward more just ends. Now, the three largest employers in the nation – Walmart, Amazon and the federal government – have all rolled those policies back. Dozens of other corporations have turned back the clock on even pretending to care about equality in the workplace as well.To businesses’ credit, they had a difficult task ahead of them in 2020. “They’re faced with putting a policy in place quickly that’s responsive and doesn’t sound like lip service to frustrated people,” Dawkins said. But in doing so, they made an admission: they had not been taking diversity seriously before – and the capitulation to the administration’s demands since has betrayed that truth. And they made clear their efforts were always lip service.When corporations pushed back against Ronald Reagan in the 80s, they had the public on their side – and even a significant chunk of the Republican caucus – for at least the valence of effort. Most of the pressure was coming from Reagan himself. But when they felt the united political pressure from conservatives this time around, in the absence of near-universal public support, they had a choice to make.For companies whose values course through everything they do, the choice was easy. As Dawkins, of York University, explained: “A company like Patagonia – which challenged the first Trump administration over environmental regulations – or Ben and Jerry’s, they’ve been in this for the long haul so it doesn’t change as much.” But organizations who opted for expediency – programs to pacify rather than any transformational interrogation of institutional culture and values – capitulated.Values are only as good as their durability under pressure; and many of America’s largest companies proved an equitable, inclusive workplace was never one of their core values to begin with. More

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      in UK Politics

      Trump tariffs live: Jaguar Land Rover pauses shipments to US as 10% tariff kicks in for UK

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      Trump ally likens BBC host to a ‘kindergartener’ over tariffs before threatening to end interviewJaguar Land Rover will pause shipments of its Britain-made cars to the US for a month in light of president Donald Trump’s tariffs on the UK car industry. The British carmaker said it was suspending shipments while it considers how to mitigate the cost of Mr Trump’s 25 per cent tariff on UK cars. Mr Trump has said the impact of his tariffs plan “won’t be easy” and called for Americans to “hang tough” after a 10 per cent tariff took effect on Saturday. The initial 10 per cent “baseline” tariff, which the UK is subject to, took effect at US seaports, airports and customs warehouses at 12.01am ET (0401 GMT), with higher levies on goods from 57 larger trading partners due to start next week. The UK’s key FTSE-100 stock market suffered its worst one-day drop since the start of the Covid-19 pandemic on Friday, ending a week of havoc on global markets prompted by Mr Trump’s new tariffs war.Sir Keir Starmer will be holding talks with global leaders this weekend as countries consider how to respond.Pictured: Trump goes golfing as world reels from tariffsUS president Donald Trump has gone golfing for the third day in a row as the world reels from his tariffs on global imports.Mr Trump was seen reading a tabloid article with the headline “World War Fee,” and “China: Yeah?” as he arrived at Trump National Golf Club in Jupiter, Florida.Around the same time, Mr Trump posted to his Truth Social platform claiming China would come off worse in the trade war.“China has been hit much harder than the USA, not even close,” he said. “They, and many other nations, have treated us unsustainably badly.“This is an economic revolution, and we will win. Hang tough.” Mr Trump slapped a combined tariff of 54 per cent on Chinese goods earlier this week. Beijing responded by imposing a 34 per cent tariff on US exports to China.Trump reads a tabloid article about China’s response to US tariffs More

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      in US Politics

      Trump’s ‘Liberation Day’ could mean recession in the US and pain worldwide | Steven Greenhouse

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      With the huge and painful tariffs that Donald Trump announced on Thursday, “Tariff Man” is acting like a paranoid 12-year-old bully who is convinced that everyone has wronged him, and he wants revenge. But the president’s instrument of revenge – massive tariffs – is going to do serious damage to the US and global economies. Stock market investors are convinced that’s the case, with Wall Street and world stock markets losing trillions of dollars in value in recent days as a result of Trump’s obsession.The president has escalated his risky, vengeful trade war even though the US economy was in strong shape when he took office – the jobless rate was just 4.1%, inflation was below 3% and US economic growth was the strongest in the industrial world, with its stock market at record levels. So it’s unclear whether the US economy needed the shock treatment that Trump is inflicting. The price increases resulting from his tariffs – which are a tax on imports – will cost the average American family $3,800 a year, according to the Budget Lab at Yale.Trump is right that the number of manufacturing jobs is down substantially from decades ago, and he is intent on getting that number back up. But he’s taking a very high-stakes bet that he can significantly increase the number of factory jobs, even as many economists say the horses have left that barn, and it is too late or will be too painful to do much about it. In 1979, the US had a record 19.5m factory jobs. That number fell to 17m in 2001 and to 12.7m today (having risen by 600,000 during Joe Biden’s presidency).Trump’s new tariffs result from a combination of impulsiveness, impetuousness and ignorance, although some economists say that idiocy and economic illiteracy also play a big part. Paul Krugman says that Trump’s tariffs reflect the “whims of a mad king”, adding that the administration’s case for tariffs is “completely incoherent”, as it insists that the tariffs won’t raise prices but will still raise hundreds of billions of dollars in revenue.The tariffs that Trump announced on Thursday are staggering – 50% on tiny Lesotho, 49% on Cambodia, 46% on Vietnam, 34% on China, 32% on Taiwan, 24% on Japan and 20% on European Union countries. These percentages were arrived at not by careful, probing analysis that took months, but by some slapdash, Keystone Kops math.It would be generous to say it’s the one-eyed leading the blind. Rather, it’s an economically blind, impetuous president leading a mum, intimidated Republican-controlled Congress. One of the tragedies here is that many congressional Republicans see the grievous damage Trump is doing, but they’re too craven to speak out and risk Trump’s and Elon Musk’s social media wrath.Mark Zandi, the chief economist at Moody’s Analytics, is predicting disaster. He says that as a result of Trump’s tariffs a recession “will hit imminently and extend until next year”. Zandi says that economic growth could fall by 2 percentage points, while the jobless rate could leap to a very painful 7.5%. On Friday, the Federal Reserve chair, Jerome Powell, also sounded the alarm, saying that Trump’s tariffs could cause even slower economic growth and higher inflation than originally expected.With Trump’s 50% tariff rate on Lesotho, 46% on Vietnam and 37% on Bangladesh, those countries – with their export-dependent apparel industries – will suffer terribly. There will be huge layoffs and no doubt an increase in hunger and immiseration – just as Trump-Musk’s tremendous foreign aid cuts at USAID have already resulted in increased hunger and deaths. And one has to wonder: by pummeling poor, apparel-producing countries such as Lesotho, Cambodia, Vietnam and Bangladesh, what is Trump trying to achieve? Does he want to bring back to the US low-paying, garment-industry jobs making jeans and sneakers?Carefully crafted tariffs can be helpful. They can be used to help build important industries or prevent the wholesale destruction of industries due to other countries’ bad behavior, like China’s improperly subsidizing its industries or dumping goods on the world market far below the cost of production. Unfortunately, Trump’s so-called “liberation day” tariffs are not a scalpel designed to help specific industries, but rather a blunderbuss mess, hitting everyone and everything, including US consumers and industries. Let’s not forget that the tariffs will raise costs at many US manufacturers and make them less competitive by, for instance, greatly increasing the price of imported steel and auto parts.The tariffs that Trump is imposing are even greater than the infamous Smoot-Hawley tariffs, which are widely seen as having worsened the Great Depression. Krugman noted that Trump’s tariffs could also do serious damage because “imports as a share of the [US] economy are three times what they were in the 1920s”.Even if Trump’s tariffs were to do what he hopes – create another million or two factory jobs – the cost would be immense. A recession. Millions of families hurt by higher prices. Trillions and trillions in lost stock market value. Far worse relations with our close allies and other countries. Opening the door to Trump’s adversary, China, significantly improving its trade and economic relations with other countries. Plus, a severe economic shock to many poorer nations.And it’s not at all certain that Trump’s tariffs will create a million or more manufacturing jobs: US economic growth and jobs will be hurt by a possible tariff-induced recession, trade retaliation from other countries, a long-term loss of markets as traditional trading partners turn away from the US, and a possible long-term decline in US industrial competitiveness as tariff protections enable inefficient companies to succeed.skip past newsletter promotionafter newsletter promotionTrump’s big hope is that corporations will build new factories and create more factory jobs in the US, but corporate executives won’t do that unless they’re convinced that there’s economic stability and predictability. They’re not blind to how capricious and unpredictable Trump is, and they know that he loves to play master dealmaker and win concessions from other countries and then immediately slash their tariffs. Trump’s team says these tariffs will be here for the long haul, but can corporate CEOs count on those claims when they’re deciding to spend $400m on a new factory?In announcing his huge new tariffs last Thursday, Trump proclaimed: “April 2, 2025 will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again.” As usual, Trump failed to note some extremely important things.Although he won’t admit it, the US is already very wealthy. If he were truly serious about fixing the economy and making it fairer, he wouldn’t be rushing to give massive tax cuts to the ultra-rich and sparking fears of vast cuts Medicaid and food stamps that struggling American families rely on.What Trump and his team will never admit is that 2 April 2025 may for ever be remembered as the day the US economy took a grievous, Trump-induced tumble toward recession and higher prices. And not that Trump cares, but 2 April 2025 may also be remembered overseas for creating tremendous pain for struggling workers from Bangladesh to Lesotho to Honduras.

      Steven Greenhouse is a journalist and author focusing on labor and the workplace, as well as economic and legal issues More

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      in US Politics

      Trump extends deadline for TikTok sale to non-Chinese buyer to avoid ban

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      Donald Trump said he will sign an executive order to extend the TikTok ban deadline. This is the second time the president will have delayed the ban or sale of the social media app, and will punt the deadline to 75 days from now.The TikTok deal “requires more work to ensure all necessary approvals are signed”, Trump announced on his Truth Social platform on Friday.ByteDance, TikTok’s parent company, issued a statement in response to the executive order: “ByteDance has been in discussion with the U.S. Government regarding a potential solution for TikTok U.S. An agreement has not been executed. There are key matters to be resolved. Any agreement will be subject to approval under Chinese law.”Congress passed a law last year forcing TikTok to either divest or sell its assets in the US. The law stemmed from concerns that the app’s Chinese owner, ByteDance, could use the social media platform to manipulate Americans. The first deadline to ban or force the sale of the app was 19 January. But, on his first day in office, Trump signed an executive order to delay that decision to 5 April. Now the new deadline will be in mid-June.Earlier this week, the president met with potential buyers for TikTok and said his administration is “very close” to a deal. Among those who’ve reportedly thrown in bids are a consortium of investors led by the software giant Oracle, asset manager Blackstone, Amazon, Walmart, billionaire Frank McCourt, a crypto foundation, and the founder of the adult website OnlyFans.TikTok is a tremendously popular social media app with 170 million users in the US. Investors and corporations see huge appeal with owning the app and its secretive algorithm.ByteDance has said it has no plans to sell TikTok and in previous court filings said a divestiture “is simply not possible: not commercially, not technologically, not legally”.After announcing sweeping tariffs on dozens of countries, Trump hinted on Thursday aboard Air Force One that he might lessen the trade penalties on China if ByteDance were to approve a sale. The country faces a 54% tariff on goods imported to the US. “We have a situation with TikTok where China will probably say we’ll approve a deal, but will you do something on the tariffs. The tariffs give us great power to negotiate,” he said.In his Truth Social post Friday, Trump reiterated that sentiment, saying: “We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs (Necessary for Fair and Balanced Trade between China and the U.S.A.!).skip past newsletter promotionafter newsletter promotion“We do not want TikTok to ‘go dark,’” he continued. “We look forward to working with TikTok and China to close the Deal. Thank you for your attention to this matter!” More