OTTAWA — Prime Minister Mark Carney says Canada will retain its CUSMA protections under a proposed new U.S. tariff regime targeting countries Washington believes are not doing enough to prevent goods made with forced labour from entering their markets.The proposed 10% tariff was announced Tuesday by the Office of the United States Trade Representative as part of a broader action affecting roughly 60 economies, including Canada, Mexico, China and the European Union.The announcement came just hours after Intergovernmental Affairs Minister Dominic LeBlanc met in Washington with U.S. Trade Representative Jamieson Greer. No major announcements emerged from those talks.Speaking to reporters Wednesday, Carney said the proposed measure is still under consultation and that Canada’s preferential access under the Canada-United States-Mexico Agreement remains intact..“Explicitly in the decision, Canada, the carve out for CUSMA is referenced and maintained,” Carney said.“So that puts us in a position where, again, we would still have the best trade deal of any of the U.S. trade counterparts.”The proposed tariffs are subject to a consultation period of at least 30 days before any final decision is made.Carney said Canada shares the broader American objective of preventing forced labour from entering international supply chains.“The issue, the motivation of the U.S. action … is something that we share,” he said.“Canada has a very strong legislative regime against forced labor in supply chains.”The prime minister added that the federal government is preparing additional legislative measures to strengthen Canada’s enforcement regime and hopes to introduce them before Parliament rises for the summer.While details of the final tariff framework remain uncertain, Carney suggested the practical impact on Canadian exports would be limited because of the CUSMA exemption.“When you boil down the action … for the vast, vast majority of Canadian trade, it will not have an impact,” he said.
