The Canadian government has formally responded to the United States regarding proposed tariffs on Canadian goods, arguing that there is no justification for such measures. In a submission to the United States Trade Representative, Ottawa asserted that its existing and newly introduced legislation to combat forced labour in supply chains provides sufficient protection. The government emphasized its ongoing commitment to working with the U.S. to eradicate forced labour from global trade, suggesting that current safeguards make additional duties unnecessary.
This dispute stems from investigations launched in March by U.S. Trade Representative Jamieson Greer, who targeted 60 countries, including Canada, over concerns regarding the enforcement of forced labour bans. The U.S. has proposed 10 per cent duties on nations deemed to have insufficient enforcement mechanisms. Canada’s response, filed ahead of a three-day hearing in Washington, highlights the recent introduction of Bill C-35, which creates a public list of products linked to forced labour and requires importers to prove their goods are not produced through slavery.
Canadian industry groups have also weighed in, urging the U.S. to prioritize targeted bilateral cooperation rather than broad, country-level tariffs. Business leaders argue that the deeply integrated nature of the North American market makes such punitive measures ineffective and potentially harmful to trade. As the current 10 per cent worldwide tariffs are set to expire at the end of July, the outcome of these discussions remains a critical point of uncertainty for cross-border commerce. The federal government continues to advocate for a collaborative approach to address supply chain integrity.