The U. S. government, under President Trump, has initiated a probe into 60 countries, including Canada, to assess their effectiveness in preventing the import of goods made with forced labour. This investigation, conducted under Section 301 of the Trade Act of 1974, aims to determine whether these nations have adequately enforced measures against forced labour.
U. S. Trade Representative Jamieson Greer stated that the investigations seek to address the disadvantage faced by American workers and firms competing against foreign producers potentially benefiting from forced labour. The USTR will examine whether countries have policies that are "unreasonable or discriminatory and burden or restrict U. S. commerce". While Greer's statement doesn't explicitly threaten tariffs, Section 301 allows for their imposition if unfair trade practices are discovered.
Canada already has rules forbidding forced labour in supply chains and free trade agreements. Canada's Minister of Trade, Dominic LeBlanc, has indicated Canada's commitment to collaborating with its CUSMA partners to tackle forced labour in international supply chains. In 2024, Canada introduced the Fighting Against Forced Labour and Child Labour in Supply Chains Act, requiring businesses to report on their efforts to minimize forced labour risks.
The investigation occurs as Canada, Mexico, and the U. S. prepare for a mandatory review of the Canada-U. S.-Mexico Agreement (CUSMA). The U. S. investigation will involve public consultations and reports, with potential tariffs imposed if issues are not resolved. Written comments for the investigations are due by April 15, 2026, and public hearings will commence on April 28, 2026.
