The U.S. Trade Representative has recommended a 10 per cent tariff on Canada, Mexico, the U.K., and other countries for insufficient enforcement of forced labour bans, along with a 12.5 per cent duty on additional nations, while exempting CUSMA-compliant goods.
WASHINGTON - The Trump administration has introduced a new tariff proposal targeting Canada and several other nations, citing concerns over forced labour in global supply chain s.
According to a report released late Tuesday by the United States Trade Representative (USTR), a 10 per cent additional tariff should be imposed on Canada, Mexico, the United Kingdom, and other countries deemed insufficient in enforcing bans on forced labour. The investigation, conducted under Section 307 of the Tariff Act of 1930, which prohibits the importation of goods made with forced labour, has identified systemic non-compliance in these jurisdictions.
The USTR's findings suggest that these countries have failed to implement adequate measures to prevent forced labour practices within their production and export sectors. In addition to the 10 per cent duty on the mentioned nations, a separate 12.5 per cent tariff is proposed for dozens of other countries that also fall short in addressing forced labour.
However, goods that comply with the Canada-U.S.-Mexico Agreement (CUSMA), also known as the United States-Mexico-Canada Agreement (USMCA), will be exempt from these new tariffs. This exemption underscores the administration's continued support for the continental trade pact, which includes enforceable labour provisions. The timing of the tariff threat is significant, coming just hours after Canadian Minister of International Trade, Export Promotion, Small Business and Economic Development, Dominic LeBlanc, met with USTR Jamieson Greer in Washington.
The meeting was intended to prepare for the upcoming mandatory review of CUSMA, which is scheduled to take place in 2026. The Trump administration's move appears to leverage trade policy to pressure allies on labour standards, while also navigating the legal constraints imposed by recent judicial rulings.
Earlier this year, the U.S. Supreme Court invalidated a key tariff authority that President Donald Trump had frequently used to impose unilateral tariffs, notably those linked to national security concerns under Section 232 of the Trade Expansion Act of 1962. That decision curtailed the president's ability to impose tariffs without explicit congressional authorization, prompting the administration to rely more heavily on other statutory provisions, such as the forced labour investigation under Section 307.
The USTR's report marks a strategic shift, using existing laws to pursue trade penalties while avoiding the legal pitfalls that plagued previous tariff actions. The proposal has already sparked concerns among trade partners and legal experts, who warn that broad tariffs based on forced labour determinations could trigger retaliatory measures and disrupt supply chains. Canada, in particular, has positioned itself as a leader in ethical labour practices and may challenge the findings as unfounded.
The investigation's scope and methodology remain unclear, and critics argue that the administration is conflating forced labour with broader labour rights issues to justify protectionist measures. As the 2026 review of CUSMA approaches, this tariff threat adds a new layer of tension to North American trade relations, potentially complicating negotiations over labour, environmental, and digital trade provisions.
The finalization of these tariffs will depend on a public comment period and further analysis, but the signal to trading partners is unmistakable: the United States is prepared to use trade tools aggressively to enforce its labour standards, even among traditional allies. This report by The Canadian Press was first published on June 3, 2026. Kelly Geraldine Malone contributed reporting from Washington
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