STRICTER FORCED-LABOUR REGIME AHEAD?
CANADA TO STRENGTHEN FORCED LABOUR REGIME UNDER U.S. TARIFF PRESSURE
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Forced-labour compliance has been a growing issue for Canadian importers for several years. While Canada already has import restrictions on forced-labour products in place, the federal government is now looking to strengthen that regime further — this time under U.S. tariff pressure.
On June 2, 2026, the United States Trade Representative (“USTR”) announced that Canada had failed to effectively enforce prohibitions on goods made with forced labour. Accordingly, the USTR has proposed an additional 10% tariff on goods from Canada.
In response, Canada has indicated that new legislation will soon be introduced to make that regime even stronger. For importers, this is a clear signal that the forced-labour rules may become stricter.