Trump targets Canada with new forced-labour tariffs on 60 nations
The U.S. president's latest trade action names Canada among 60 countries facing levies of up to 12.5 per cent over forced labour allegations.
U.S. President Donald Trump has announced plans for sweeping tariffs of between 10% and 12.5% on 60 countries, including Canada, over forced labour concerns.
The United States Trade Department said the tariffs are being proposed against countries it alleges have not taken action to tackle the importing of goods made with forced labour.
The threatened tariffs mark the latest move by Mr Trump to impose levies after the U.S. Supreme Court ruled in February that his "liberation day" tariffs were illegal.
He has since introduced blanket 10% tariffs worldwide, which took effect on February 24, though these were also ruled to be unlawful by the U.S. trade court, which is now being appealed.
The new set of threatened tariffs would affect major U.S. trading partners such as the United Kingdom, Canada, European Union, Japan, Norway, Taiwan and India. Canadian exporters now face the prospect of higher costs and disrupted supply chains at a time when bilateral trade is already under strain.
U.S. Trade Representative Jamieson Greer said: "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.
"We will no longer tolerate this disparity."
He said while some countries have taken steps to address this, "each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labour globally." Ottawa has previously signalled it will respond firmly to any unjustified trade barriers.
The United States is now consulting on the proposed tariffs, with hearings due on July 7.
It follows an investigation by the United States into 60 trading partners related to the "failure of various economies to impose and effectively enforce a prohibition on the importation of goods produced with forced labour".
The consultation period will give Canadian officials and businesses a window to make submissions before any final determination.