The 10 per cent tariff will stack on top of the 50 per cent levy U.S. President Donald Trump proposed Monday on a broad range of Canadian exports. However, this new round will not include goods that are covered under the Canada-United States-Mexico Agreement (CUSMA). (The Logic)
Talking point: The latest tariffs follow a Trump administration investigation under Section 301 of the Trade Act of 1974, which concluded that Canada has failed to enforce its ban on imports made using forced labour. The president launched the investigation earlier this year, after the U.S. Supreme Court struck down his “Liberation Day” and fentanyl-related tariffs. He temporarily replaced them with a 10 per cent global tariff, but that measure expires Friday. These new forced labour levies are expected to be a more durable legal mechanism for Trump’s tariff agenda. The Canadian government had rushed to table new forced labour legislation in an attempt to stave off this latest tariff blow, but it has yet to pass. Dominic LeBlanc, minister for Canada-U.S. trade, said Canada already has one of the world’s most robust frameworks to prevent forced labour, but the government will continue to work with the U.S. on the issue.
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