Canada Rejects U.S. Forced‑Labour Tariff Proposal Under Section 301

The Canadian government told the U.S. Trade Representative that there is no justification for imposing forced‑labour tariffs on Canadian goods. In a written submission to the Office of the U.S. Trade Representative, Ottawa argued that its existing forced‑labour legislation, recent stricter enforcement bill (C‑35) and a public list of products linked to forced labour make additional duties unnecessary. Canada asked that it be assessed separately under Section 301 and that the proposed 10 % tariff be suspended while its reforms are evaluated.

U.S. Trade Representative Jamieson Greer has launched investigations into 60 countries, including Canada, proposing 10 % duties for nations he says do not do enough to ban forced labour and 12.5 % duties for others with partial or no bans. Canada, Mexico and the United Kingdom are among those singled out. The Canadian Chamber of Commerce and the Canadian Federation of Agriculture warned that broad tariffs could disrupt highly integrated North‑American supply chains, increase costs for farmers and agri‑food businesses, and undermine the benefits of the Canada‑U.S.–Mexico Agreement (CUSMA). The United States has also pursued other tariff measures after the Supreme Court struck down a previous tool used by former President Trump. The dispute centers on how best to combat forced labour in global supply chains without harming trade relations.