Trump hitting countries, including Canada, with forced labour tariffs

The Trump administration says it is hitting dozens of countries, including Canada, with tariffs citing forced labour in supply chains.

The United States Trade Representative’s office announced the new duties on more than 60 nations today, hours before President Donald Trump’s previous tariff tool was set to expire.

Canada, Mexico and the United Kingdom are among the countries getting hit with a 10 per cent tariff, while other nations are seeing a 12.5 per cent levy.

It’s not immediately clear if there is an exemption for goods compliant under the Canada-U.S.-Mexico Agreement on trade.

The Trump administration launched trade investigations earlier this year through Section 301 of the Trade Act of 1974 after the U.S. Supreme Court struck down the tariff tool used for the “Liberation Day” and fentanyl-related duties.

The Canadian government previously told the Trump administration that new legislation combating forced labour in supply chains should shield Canada from new tariffs.

Uncertainty about the future of the trade agreement has caused anxiety in business communities in all three countries even as negotiations continue.

Trump has called the agreement “irrelevant” and has said it may have served its purpose. But Greer told the Senate hearing that aspects of the agreement still work.

The United States and Mexico are months into official CUSMA negotiations, while Ottawa and Washington have not started similar talks.

CUSMA was negotiated during the first Trump administration to replace the North American Free Trade Agreement. The sometimes volatile negotiations were a key test for Ottawa, but ultimately an agreement was reached that was praised by all three countries.

Kelly Geraldine Malone, The Canadian Press

– With files from INsauga.com