Washington, July 23: The administration of U.S. President Donald Trump has announced a new round of tariffs on imports from Canada and dozens of other countries, citing concerns about the enforcement of measures aimed at preventing goods produced through forced labour from entering global supply chains.
The new trade measures, announced Thursday by the Office of the United States Trade Representative (USTR), impose a 10 per cent tariff on imports from Canada, Mexico and the United Kingdom, while most other affected countries will face a 12.5 per cent tariff.
However, the U.S. administration confirmed that goods qualifying under the Canada–United States–Mexico Agreement (CUSMA/USMCA) will remain exempt from the new duties.
As a result, officials say the announcement is not expected to significantly alter the tariff framework that has applied to Canada since February, although several Canadian sectors remain subject to separate U.S. tariffs on products including steel, aluminum, automobiles and cabinetry.
In announcing the decision, U.S. Trade Representative Jamieson Greer said the measures are intended to encourage stronger international enforcement against forced labour.
“President Trump recognizes that decades of moral persuasion have not eradicated forced labour from global supply chains,” Greer said, adding that the United States expects its trading partners to strengthen their own enforcement efforts.
The tariffs follow investigations conducted under Section 301 of the U.S. Trade Act of 1974, after earlier tariff measures introduced by the Trump administration were curtailed following a ruling by the U.S. Supreme Court.
According to the USTR report, Canada has not effectively enforced its prohibition on imports produced through forced labour.
The Canadian government strongly rejected that assessment.
Canada–U.S. Trade Minister Dominic LeBlanc said the new measures were anticipated after Washington indicated it intended to replace temporary global tariffs with a more permanent framework.
LeBlanc emphasized that CUSMA-compliant goods remain exempt, limiting the direct impact on much of Canada’s trade with the United States.
He also stated that Canada shares the objective of preventing goods produced with forced labour from entering supply chains and argued that the country already maintains one of the world’s strongest legal frameworks to combat forced labour.
The minister pointed to recently introduced Bill C-35, which would strengthen enforcement by creating a public registry identifying products linked to forced labour and requiring importers to demonstrate that goods from designated regions were not produced through forced or slave labour.
Canadian officials previously submitted formal representations to the U.S. government arguing that Canada’s existing laws, combined with the proposed legislative changes, provided no basis for additional tariffs on Canadian products.
Business organizations also questioned the effectiveness of the U.S. measures.
Matthew Holmes, Executive Vice-President and Chief of Public Policy at the Canadian Chamber of Commerce, said Canada has already invested heavily in supply chain transparency and compliance measures.
He argued that if the objective is genuinely to eliminate forced labour, governments should pursue coordinated international action rather than unilateral tariffs.
The latest announcement comes amid broader trade tensions between Canada and the United States.
Earlier this week, President Trump signed separate orders imposing 50 per cent tariffs, effective next month, on a range of Canadian products, including honey, alcoholic beverages and hockey sticks, citing disputes over provincial liquor policies, Canada’s supply-managed dairy system and vehicle import quotas.
Despite the new trade measures, Canadian and U.S. officials say discussions on outstanding trade issues are expected to continue in the coming weeks as both countries seek to preserve the broader economic relationship under the CUSMA framework.