The proposed measure would impose a 10 per cent tariff on imports from Canada and other nations accused of weak enforcement against forced-labour-related goods. Most Canadian exports are expected to remain unaffected because products that comply with the Canada-United States-Mexico Agreement (CUSMA) would be exempt from the new duties.
Prime Minister Mark Carney said the proposal was anticipated, noting that American officials had been signalling changes for months. The move follows legal challenges that disrupted earlier tariffs imposed under emergency economic powers legislation. After the US Supreme Court struck down those measures, the Trump administration began exploring alternative pathways to maintain trade restrictions.
The latest proposal stems from a US investigation conducted under Section 301 of the Trade Act of 1974. The review examined the efforts of dozens of countries to prevent the importation of goods produced through forced labour. While Canada faces a 10 per cent tariff under the proposal, more countries will face a higher 12.5 per cent rate.
Canadian officials have acknowledged the importance of addressing forced labour concerns and indicated that further action is on the way. Carney said new measures designed to strengthen Canada’s enforcement framework will be unveiled soon. The planned reforms will ensure products connected to forced or child labour don’t enter Canadian supply chains.
The issue has become increasingly important in North American trade relations. Under CUSMA, Canada has commitments to work alongside the United States and Mexico to block goods produced through forced labour. Perceived shortcomings in enforcement could become a point of discussion during the upcoming review of the trade agreement.
American authorities have previously expressed concerns about Canada’s enforcement efforts, arguing that prohibited goods still find their way into the Canadian market. Recent investigations have highlighted products linked to forced labour, particularly in agriculture, textiles and manufacturing.
Reaction within Canada has been mixed. Opposition parties have criticized the proposed tariffs while also calling for stronger action to address forced labour risks. Some lawmakers argue that Canada has been slow to implement tougher safeguards, while others view the US tariffs as unnecessary.
Despite the criticism, there is broad agreement among Canadian political leaders that forced labour has no place in supply chains. As Ottawa prepares new enforcement rules, the focus will be on balancing trade interests with efforts to strengthen labour protections.
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