On June 3, 2026, the United States Trade Representative (USTR) released the findings of investigations into 60 trading partners over their failure to take sufficient action to prohibit the importation of goods made with forced labour. The USTR argues that the use of forced labour reduces production costs, allowing goods to be sold at artificially low prices and subjecting U.S. workers and companies to unfair competition.
The USTR found all 60 countries to be at fault, including Canada. Citing research by Above Ground, the USTR determined that Canada is failing to “effectively enforce” its ban on goods made with forced labour and proposed a punitive 10 percent tariff on all Canadian goods, with an exemption for goods covered under the Canada-U.S.-Mexico Agreement (CUSMA).
While Above Ground welcomes increased attention to the serious issue of forced labour in Canada’s supply chains, we do not support the imposition of new tariffs. As we stated in our April submission to the USTR, greater coordination and collaboration among trading partners, alongside meaningful consultation with unions and workers’ rights organizations, would be a more constructive approach.
Above Ground also welcomes the Canadian government’s response to the USTR’s report, including the Prime Minister’s reference to forthcoming legislative amendments to strengthen Canada’s forced labour regime. Such amendments were last proposed in the 2024 Fall Economic Statement but never materialized. We look forward to seeing these amendments tabled in Parliament before the close of the current session on June 19, 2026.