Under Pressure: New U.S. Tariffs Force Canada to Overhaul Forced Labour Crackdown

Canada plans to strengthen its laws to block imports linked to forced labour as the United States proposes new tariffs targeting Canadian goods over alleged enforcement failures, amid a political controversy involving a Canadian MP’s dismissal of evidence on forced labour in China.

U.S. proposes tariffs over forced labour enforcement

The United States Trade Representative (USTR) announced on June 2, 2026, a proposal to impose a 10% tariff on imports from Canada, Mexico, the European Union, and other countries it says have not effectively enforced bans on goods produced with forced labour. Other nations with weaker regulations could face tariffs of up to 12.5% under Section 301 of the Trade Act of 1974, designed to address unfair foreign trade practices.

USTR Ambassador Jamieson Greer stated: “The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.” The tariffs aim to pressure countries to improve enforcement and eliminate forced labour from supply chains.

Canada’s response and planned legislative measures

Prime Minister Mark Carney said the new U.S. tariff threat was “not a surprise” and affirmed Canada’s commitment to eliminating forced labour. He indicated the government will introduce more stringent laws to better prevent goods made with forced labour from entering Canada, with proposals expected before the current parliamentary session ends on June 19.

“Canada has a very strong legislative regime against forced labour in supply chains,” Carney said. “We don’t want any element of forced labour coming in goods and services, and we want to use our influence to eliminate this practice of forced labour and child labour.”

Dominic LeBlanc, Minister of Intergovernmental Affairs and responsible for Canada-U.S. trade relations, met with Ambassador Greer in Washington on June 2 to discuss the issue. LeBlanc said the talks reinforced a shared commitment to combat forced labour, though he declined to speculate on Canadian retaliation if tariffs are imposed.

“It won’t surprise you that we share the concern of the Americans and other economic partners that we need to do everything we can together to face this challenge,” LeBlanc said.

Controversy over Canadian MP Michael Ma’s comments

The political sensitivity of forced labour issues in Canada increased following a parliamentary committee hearing in March 2026, when Liberal MP Michael Ma questioned evidence linking Chinese goods to forced labour, particularly involving Uyghur populations in Xinjiang. Ma repeatedly pressed witness Margaret McCuaig-Johnston, senior fellow at the University of Ottawa, to confirm if she had personally witnessed forced labour in China’s Shenzhen auto manufacturing sector, casting doubt on her testimony.

Ma’s remarks were widely criticized by human rights groups and opposition MPs for undermining documented evidence of forced labour and aligning with Chinese government denials. He later apologized, stating his questions referred specifically to Shenzhen rather than the Xinjiang region and condemned forced labour in all forms. However, Ma refused to clarify publicly whether he believes forced labour exists in China.

The Uyghur Human Rights Project (UHRP) condemned Ma’s comments, calling them a “willful disregard” of extensive evidence from international experts, human rights organizations, and investigative journalists documenting forced labour involving Uyghurs and other minority groups in China. This controversy has added pressure on the Canadian government amid the U.S. trade investigation.

CityNews Toronto highlighted the ongoing denial by Chinese authorities and the call for Prime Minister Carney to clarify Canada’s position on forced labour. The news outlet tweeted:

China is again denying claims of forced labour in the country as calls grow for Prime Minister Mark Carney to clarify Canada’s stance on the issue amid fallout from comments made by Liberal MP Michael Ma https://t.co/aoi4ap1lrs

— CityNews Toronto (@CityNewsTO) March 29, 2026

Forced labour concerns amid trade tensions

The forced labour issue is intertwined with broader trade tensions between Canada and the United States. The Canadian government recently struck a deal with China allowing tens of thousands of Chinese electric vehicles into Canada annually with reduced tariffs, a move scrutinized by U.S. trade officials.

The U.S. probe into forced labour enforcement coincides with efforts to protect American industries from competition perceived as benefiting from unfair labour practices. Canada’s plans to reinforce legislation aim to demonstrate its commitment to human rights and fair trade.

Canada’s proposed legislative measures will likely focus on tightening supply chain transparency and strengthening enforcement mechanisms to ensure that goods produced with forced labour are barred from Canadian markets. The government faces the challenge of balancing trade interests with ethical standards amid mounting international scrutiny.