The Canadian government has formally challenged the United States over proposed tariffs linked to forced labour concerns. In a written submission to the U.S. Trade Representative, Ottawa argued that there is no basis for the 10 per cent duties currently being considered by the Trump administration. The government emphasized that its existing and newly proposed legislative measures are sufficient to combat forced labour within global supply chains, asserting that these actions should exempt Canada from the punitive trade measures.
This dispute arises from a broader U.S. investigation into 60 countries, initiated by U.S. Trade Representative Jamieson Greer. The U.S. administration claims that these nations, including Canada, are not doing enough to enforce bans on goods produced through forced labour. The threat of these tariffs has created significant uncertainty for cross-border trade, with industry groups warning that such broad measures could disrupt the deeply integrated North American market.
To address these concerns, the Canadian government recently tabled Bill C-35. This legislation aims to strengthen enforcement by creating a public list of products linked to forced labour in specific regions. Under the proposed rules, importers would be required to provide evidence that their goods are not produced through slavery if they fall under the high-risk categories identified by the government. This shift in the burden of proof is intended to demonstrate Canada’s commitment to ethical supply chains.
Business leaders and agricultural groups have expressed concern over the potential for unintended consequences if the tariffs proceed. They argue that targeted bilateral cooperation is a more effective strategy than broad, country-level duties. As the July deadline for existing temporary tariffs approaches, the outcome of these negotiations remains critical for Canadian manufacturers and exporters who rely on stable access to the U.S. market.