Canada says there is no basis for U.S. forced labour tariffs

Canada has told the Trump administration that its existing and newly proposed forced labour rules should exempt Canadian goods from any new tariffs tied to supply chain enforcement. In a submission to the U.S. Trade Representative, Ottawa said it remains committed to cooperating with the United States to stop forced labour in global supply chains. It argued there is no justification for added Section 301 duties on Canadian products, pointing to current prohibitions, transparency requirements and new import legislation. The submission is part of a wider U.S. review that includes more than 1,500 comments from governments and industry groups ahead of hearings in Washington this week. U.S. officials have said Canada and several other countries may face duties if they are seen as not doing enough to enforce bans on forced labour. Canadian business groups and U.S. trade associations also urged Washington to avoid broad tariffs, saying targeted enforcement and continued exemptions under CUSMA would be less disruptive for integrated North American supply chains.