Canada braces for U.S. tariffs on forced labour
Ottawa pledges new legislation after Trump administration targets Canada with 10% duty over supply-chain enforcement gaps.
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The U.S. is imposing a 10 per cent tariff on Canada and other trading partners for not doing enough to stop forced labour in supply chains. Prime Minister Mark Carney said Wednesday his government will introduce legislation to address the issue, calling Canada's existing regime "very strong" but pledging to tighten enforcement.
The Trump administration's investigation found Canada's border agency takes minimal enforcement action — fewer than expected given import volumes — and criticized Canada as a "dumping ground" for re-exported forced-labour goods blocked by the U.S. The tariff doesn't apply to goods compliant under CUSMA, the continental trade pact.
Carney said his government supports the "overall objective" of combating forced labour and child labour. The new legislation is expected in coming weeks. Trade Minister Dominic LeBlanc is in Washington for trade talks as the U.S. holds hearings on the tariffs in July.
The tariff threat came as part of the Trump administration's broader effort to shore up its trade agenda after the Supreme Court struck down its favourite enforcement tool.