In a recent development, the Trump administration is set to levy new tariffs on multiple trading partners, including Canada, citing concerns about the presence of goods produced through forced labor in their supply chains. This decision comes as part of the administration’s efforts to replace broader tariffs that were invalidated by the U.S. Supreme Court earlier this year.
The announcement of these proposed tariffs was made by U.S. Trade Representative Jamieson Greer following a meeting with Canada-U.S. Trade Minister Dominic LeBlanc. Greer emphasized the importance of addressing the importation of goods manufactured with forced labor, calling the inaction of key trading partners unacceptable.
Under the proposal, Canada would face a 10 percent tariff on exports for goods that do not adhere to the rules outlined in the Canada-U.S.-Mexico Agreement (CUSMA). However, the majority of Canada’s exports to the U.S., approximately 90 percent, would be exempt from these tariffs.
The new tariffs are subject to a public comment and review process, which includes hearings scheduled to begin in July. The U.S. trade representative’s office initiated investigations earlier this year into whether 59 countries and the European Union are effectively prohibiting the import of goods produced through forced labor.
Critics have raised concerns about the fairness of the U.S. investigation, with some experts questioning the rationale behind imposing tariffs on all 60 trading partners simultaneously. David Henig, a policy director at the European Centre for International Political Economy, described the move as “preposterous” and suggested that the forced labor issue is being used as a pretext to implement desired tariffs.
Apart from Canada, 15 other trading partners would face a 10 percent tariff, while the remaining 44 countries, including Japan and South Korea, could be subject to a 12.5 percent tariff. The U.S. administration’s decision to impose tariffs is not solely based on the forced labor issue but is also seen as a strategy to sidestep legal constraints imposed by the Supreme Court.
Human rights advocates have expressed reservations about the tariff plan, with concerns raised over the potential impact on efforts to combat forced labor and protect workers’ rights. Despite acknowledging gaps in Canada’s enforcement of forced labor regulations, these advocates oppose the imposition of additional tariffs as a means to address the issue.
The longstanding issue of forced labor in international trade has been a point of contention, with previous warnings and negotiations highlighting the need for stronger measures to prevent the entry of goods produced through forced labor into global supply chains.