Prime Minister Mark Carney expressed no surprise at the Trump administration’s intention to impose import tariffs on products allegedly manufactured using forced labor. A recent report from U.S. Trade Representative Jamieson Greer highlighted several countries, including Canada, for inadequate enforcement of regulations against goods produced with forced labor.
The report criticized Canada and a few other nations for their ineffective implementation of import bans on such items. Consequently, the U.S. is suggesting a new 10% tariff on Canada and other countries, exempting goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA), which will spare the majority of Canada’s exports to the U.S.
Carney stated that the U.S. had been planning these tariffs for some time during a press briefing on Parliament Hill. This latest round of tariffs follows the overturning of previous levies imposed under the International Emergency Economic Powers Act (IEEPA) by the U.S. Supreme Court in February.
Following the Supreme Court ruling, President Trump vowed to impose new tariffs using alternative mechanisms. Temporary tariffs were immediately imposed under Section 122 of the U.S. Trade Act, but these tariffs will expire unless Congress approves an extension.
In March, Greer initiated an investigation into forced labor practices under Section 301 of the U.S. Trade Act of 1974. The recent report from Greer’s office, which was the outcome of this investigation, proposes higher tariffs of 12.5% on numerous countries that have not enforced import bans on goods made with forced labor.
Carney mentioned that he shares concerns about products made with forced labor and mentioned that Canada is working on new enforcement rules to strengthen its regulations. The government plans to introduce these rules in the coming weeks.
Canada’s Minister responsible for Canada-U.S. trade, Dominic LeBlanc, connected the overturning of IEEPA tariffs to Greer’s recent report. He expressed optimism about this year’s review of the CUSMA trade deal and highlighted the importance of collaborating with U.S. officials to prevent goods manufactured using forced labor from entering the North American market.
The U.S. has accused Canada of being slow in enforcing import bans on goods made with forced labor in the past, and reports have surfaced regarding such goods appearing in the Canadian market. Carney emphasized the need for continuous improvement in preventing products made with forced labor from entering Canada.
Conservative foreign affairs critic Michael Chong criticized the U.S.’ recent actions as unjustified but urged the Canadian government to take more significant steps in addressing forced labor concerns. NDP MP Heather McPherson echoed similar sentiments, emphasizing the importance of protecting human and labor rights in supply chains.
The Canadian Ombudsperson for Responsible Enterprise (CORE), established under the Trudeau government, aims to address abuses by Canadian corporations abroad, including forced labor practices. However, the office has been without an ombud for almost a year.
