Ensure that your imported products are not made with forced labour as the U.S. launches 301 Tariff Investigations 

On March 13, The Office of the United States Trade Representative (USTR) launched new Section 301 tariff investigations targeting 60 countries, including Canada, which accounts for roughly 99% of U.S. imports. These investigations focus on whether countries are failing to prevent imported products made with forced labour. As part of the process, the U.S. will assess the effectiveness of Canada’s enforcement and prosecution efforts. It remains unclear if the investigation will lead to new tariffs or serve primarily as a trade negotiation tactic given that Canada’s federal laws clearly ban (outlined in S-211)  importation of products made with forced labour -USTR has recently stated Canada’s possible lack of enforcement as a trade barrier in the 2026 Foreign Trade Barriers report. The U.S. has stated concerns that forced labour creates unfair competition with American made products, undercuts American jobs, and is a national security threat.  

There is no evidence that Canada consistently allows the importation of products made with forced labour. Currently, businesses in Canada are responsible to report on forced labour (i.e., signed documents stating that they are not importing goods made from forced labour). However, there is minimal public information or data for how enforcement and prosecution on the forced labour laws are conducted. Since 2021 the Canada Border Services Agency has blocked two shipments from entering Canada as it was determined that the products were produced with forced labour. The U.S. might view Canada’s lack of enforcement and prosecution data as a sign that Canada is not effectively enforcing its labour laws.  

In the coming months the Government of Canada will have to reassure the U.S. that its ban on force labour is taken seriously. For now, businesses should be aware of where raw materials, components, and products are being sourced, and ensure reporting is accurate as the Government of Canada could increase enforcement activities.  

Supply-Build Canada