Trump moves to hit over 60 countries including Canada with new tariffs over 'forced labour'

Trump moves to hit over 60 countries including Canada with new tariffs over 'forced labour'

Proposed tariffs the latest step in replacing duties struck down by U.S. Supreme Court

What to know about proposed U.S. tariffs over forced labour

The Trump administration plans to impose new tariffs on dozens of trading partners, including Canada, over allegations the countries are allowing goods produced by forced labour into their supply chains.

It's the White House's latest step to replace the broad-based tariffs that were struck down by the U.S. Supreme Court in February.

The proposed new tariffs were announced by U.S. Trade Representative Jamieson Greer late Tuesday night, not long after he wrapped up an afternoon meeting with Canada-U.S. Trade Minister Dominic LeBlanc in Washington.

"The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable," Greer said in a news release.

Greer is proposing a 10 per cent tariff on exports from Canada. They would apply only on goods that don't comply with the rules of origin in the Canada-U.S.-Mexico Agreement (CUSMA). That means nearly 90 per cent of Canada's exports to the U.S. would be exempt from the tariff.

The wording of the official announcement from Greer's office describes it as an additional tariff, suggesting it would stack on top of an existing tariff of 10 per cent on Canadian exports that don't comply with CUSMA. That tariff is due to expire on July 24.

Carney says CUSMA spares most Canadian trade from proposed U.S. forced labour tariff

Under U.S. law, the president has the power to impose tariffs on countries if an investigation deems their trade practices to be unfair and harmful to U.S. commerce.

The office of the U.S. trade representative launched investigations in March into whether 59 countries plus the European Union are effectively banning the importation of goods produced with forced labour.

Forced labour accusation 'absurd,' says EU official

Tuesday night's news release declared that all 60 failed to meet the bar, prompting skeptics to question the fairness of the U.S. investigation into forced labour.

"This looks very much like trying to make the facts fit a legal justification for tariffs that has already been decided," Bernd Lange, chair of the European Parliament's trade committee, posted on social media.

"The EU has adopted the world's most stringent rules against products made with forced labour," said Lange. "Accusing EU of not doing enough against forced labour is absurd.''

Greer has now proposed a list of tariff rates that would apply to each trading partner.

Fifteen other U.S. trading partners would also face a 10 per cent tariff over the forced labour investigation. They include the European Union, the U.K., Argentina, El Salvador, Bangladesh and Pakistan.

The remaining 44 countries — including Japan, Singapore, India, South Korea and Vietnam — face a tariff of 12.5 per cent.

The Trump administration cannot impose the tariffs immediately. It must go through a period of public comment and review, starting with hearings in July.

Mike Crawley is a correspondent for CBC News, based in Washington. He began his career as a newspaper reporter in B.C., spent six years as a freelance journalist in various parts of Africa, then joined the CBC in 2005. Mike reported on Ontario politics for 15 years. He was born and raised in Saint John, N.B.

With files from The Associated Press