Trump piles on new tariffs targeting Canada
Courtesy of CBC
On June 2, U.S. Trade Representative (USTR) Jamieson Greer announced that the U.S. government planned to implement dozens of new tariffs on trading partner nations, including Canada. This was announced following a meeting with Canada-U.S. Trade Minister Dominic LeBlanc in Washington, the same day.
The additional 10 percent tariff was towards countries that allegedly have goods produced by forced labour in their own supply chains. “The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” said Ambassador Greer, “We will no longer tolerate this disparity.”
The day before, on his platform Truth Social, President Donald Trump shared an article on the recent news that Canada has entered a “technical recession,” with the addition of a controversial “51st state” comment.
Canada’s response
These tariffs follow a 6-3 decision in February by the U.S. Supreme Court to strike down the Trump administration’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA). This included a 35 percent tariff on certain Canadian goods imposed last year.
However, it's of note to know that the ruling didn’t apply to sectoral tariffs like steel, aluminium, softwood lumber, and automobiles, those are still imposed on the Canadian economy. They now have an additional 10 percent on top of them as a result of the new tariffs.
Prime Minister Mark Carney responded on June 3 that “this was not a surprise, it's something the US has been planning for a few months,” and that Canada “has a very strong legislative regime against forced labour.” He also highlighted the fact that the tariffs don’t apply to those that fall under the Canada-U.S-Mexico Agreement on trade (CUSMA). Carney used this to reinforce his claim that Canada is still getting the best deal out of all the U.S’s trading partners.
Carney downplayed Trump’s “51st state” comment by describing the U.S. President as an “exceptionally active user of social media.”
The week prior, Carney told a group of American investors in a “more divided and dangerous” world, a stronger, independent Canada would help “make America great again.” This address was held at the Economic Club of New York.
The details
Canada Total Exports to the United States 2014-2025, Courtesy of Trading Economics
Trump has implemented this worldwide tariff using Section 122 of the U.S’s 1974 Trade Act. These duties will, however, expire after 150 days unless the American Congress votes to extend them.
Canada has prohibited the import of goods “that are mined, manufactured or produced wholly or in part by forced labor” since July 1, 2020, as a result of amendments that were implemented along with CUSMA.
The USTR disputed this in their recent report on trading patterns with forced labour goods, stating that “the information available indicates that Canada is failing to effectively enforce its forced labour import prohibition.” They also accuse Canada of being a “dumping ground” for forced labour product exports that are barred from the U.S. This report coincided with the news of the tariffs that were announced by Ambassador Greer.
In a report on the U.S. from the international human rights group Walk Free, they noted that the “U.S – like other G20 countries – is exposed to the risk of modern slavery through the products it imports.” A figure cited is that nearly two-thirds of all forced labour cases are in fact linked to global supply chains.
Some examples of these forced labour products exported to the U.S. include electronics and garments from countries like China, Malaysia, and Bangladesh.
A key feature of Trump’s administration is to impose punitive tariffs on trading partners whom they perceive to be in unbalanced and unfair deals with. Exports to the United States in October accounted for 67.3 percent of all exports, the lowest non-pandemic level ever recorded. In the past, nearly 75 percent of Canadian exports went to the U.S, and a daily average of $3.6 billion of trade goods was exchanged between the two North American countries.
The Canadian-American relationship has become increasingly strained with the election of Donald Trump in 2025 and the further enactment of tariffs on the Canadian economy, along with the President’s continuous comments about Canada becoming the “51st” state.
