Prime Minister Mark Carney expressed his lack of surprise at the Trump administration’s intention to impose tariffs on goods manufactured using forced labor. A recent report from the office of U.S. Trade Representative Jamieson Greer highlighted several countries, including Canada, for their inadequate enforcement of regulations concerning products made with forced labor.
The report accused Canada and a few other nations of not effectively enforcing import bans on such items. Consequently, the U.S. is proposing a new 10% levy on Canada and other countries, excluding goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA), which means that a significant portion of Canada’s exports to the U.S. will be exempt from the tariff.
Prime Minister Carney told reporters that the U.S.’s tariff proposal was expected, as it had been under consideration for some time. These new tariffs follow previous ones imposed under the International Emergency Economic Powers Act (IEEPA), which were invalidated by the U.S. Supreme Court in February.
President Trump had previously used the IEEPA to levy tariffs on Canada and Mexico to address the influx of fentanyl and to implement global tariffs on Liberation Day. Following the Supreme Court’s ruling, Trump vowed to impose new tariffs through alternative mechanisms. Temporary tariffs were promptly imposed under Section 122 of the U.S. Trade Act, subject to approval for extension by Congress.
An investigation into forced labor practices was initiated by Greer under Section 301 of the U.S. Trade Act of 1974 in March. The report released this week singled out numerous countries for a higher tariff of 12.5% due to their failure to enforce import bans on goods produced with forced labor.
Prime Minister Carney acknowledged concerns regarding goods made with forced labor and announced forthcoming enforcement rules to enhance Canada’s regulatory framework. Minister LeBlanc linked the overturned IEEPA tariffs with the recent report, noting the U.S.’s intention to replace these tariffs when they expire in July.
Carney emphasized the need for stricter enforcement rules and mentioned upcoming proposals to strengthen Canada’s regime. Greer’s report coincided with his meeting with LeBlanc in Washington, where they discussed CUSMA reviews and proposals for enhancing the trade deal.
The Americans have previously criticized Canada for lax enforcement of import bans, and reports have surfaced concerning goods made with forced labor entering the Canadian market. The Canadian Ombudsperson for Responsible Enterprise (CORE) was established to address abuses by Canadian companies abroad, including forced labor issues, although the office has been without an ombud for nearly a year.
While Canada maintains a robust system to prevent products made with forced labor from entering the country, Carney acknowledged room for improvement. He stressed the country’s commitment to eradicating forced labor and child labor from the supply chain.
Conservative foreign affairs critic Michael Chong criticized the U.S.’s latest actions as unjustified but called on the Liberal government to take more decisive steps in combating forced labor. Chong highlighted the government’s failure to prevent products made with forced labor from entering Canada, jeopardizing Canadian jobs and trade.