Carney says latest Trump tariffs ’not a surprise’ after U.S. promises new 10% levy on Canada

Ottawa to propose strengthened rules to keep alleged forced-labour goods out.

Photo: Radio-Canada / Ivanoh Demers

Prime Minister Mark Carney says he isn't surprised by the Trump administration's plan to slap import levies on goods allegedly made with forced labour.

A report released from U.S. Trade Representative Jamieson Greer's office on Tuesday listed dozens of countries, including Canada, as having varying degrees of ineffective enforcement rules around goods made with forced labour.

The report accused Canada and a handful of other countries of failing to effectively enforce import bans on such items. As a result, the U.S. government will hit goods not compliant with the Canada-U.S.-Mexico Agreement with a 10 per cent levy.

This is not a surprise; it's something that the U.S. has been planning for a few months, Carney told reporters Wednesday on Parliament Hill.

This latest round of tariffs come after previous levies imposed under the International Emergency Economic Powers Act (IEEPA) were struck down by the U.S. Supreme Court in February.

WATCH | What to know about proposed U.S. tariffs over forced labour:

The U.S. is proposing a new 10 per cent tariff for dozens of countries it says have forced labour in their supply chains. CBC's Janyce McGregor breaks down the allegations, how much weight they hold and what goods might be exempt from fees.

U.S. President Donald Trump had used the IEEPA law to slap tariffs on Canada and Mexico to combat what he called a flood of fentanyl coming in from both countries. Trump used the same law to impose his Liberation Day global tariffs.

After the Supreme Court ruling, the U.S. president vowed to impose new tariffs using other mechanisms.

In March, Greer launched an investigation into forced labour practices under Section 301 of the U.S. Trade Act of 1974. Tuesday's report was the culmination of that investigation.

Still, Carney said he shared concerns about the importing of goods made with forced labour and that new rules are in the works to strengthen Canada's enforcement regime. The government will propose those rules in the coming weeks, he said.

Darren Major (new window) · CBC News