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U.S. Rolls Out New Global Tariff on Canada Over 'Forced Labour' Claims
The replacement 10 per cent levy takes effect as the temporary tariff struck down alongside Trump's original global regime expires, though most CUSMA-compliant Canadian exports remain exempt
Published: July 28, 2026
The Trump administration has introduced a new global tariff regime aimed at goods from Canada, the European Union and nearly 60 other trading partners, justified by claims that these countries have failed to keep products made with forced labour out of their supply chains. The move replaces a temporary 10 per cent levy imposed in February that was due to expire, though Canadian exports compliant with the Canada-U.S.-Mexico Agreement will remain exempt.
Canada's trade minister, Dominic LeBlanc, rejected the premise of the new tariff, saying the country already has "one of the world's most robust frameworks to prevent and address forced labour" and would keep engaging constructively with Washington. The U.S. Trade Representative said the measure was not targeted at any single country, insisting officials simply want to keep goods produced in sweatshops out of the market.
The forced labour tariff is the latest in a series of shifting legal justifications the administration has used after courts blocked earlier tariff regimes, including a Supreme Court ruling against emergency powers tariffs tied to fentanyl trafficking claims. Critics, including senior congressional Democrats, have called the new approach "a pretext for a tariff policy built on dubious legal theories," while separate 50 per cent tariffs on Canadian dairy, alcohol and auto products are still scheduled to take effect next month.
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