Effective July 24, 2026, the United States started imposing 10 percent to 12.5 percent tariffs on imports from sixty economies, including Canada, with certain exemptions, under section 301 of the Trade Act of 1974,

The measure is implemented under the pretext that the sixty economies failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.

Canadian Minister Dominic LeBlanc issued the following statement following the publication by the United States of its notice of final action:

"Today, the United States announced its intention to impose tariffs under Section 301 of the Trade Act of 1974 on 60 economies worldwide, including Canada.

"This measure is part of a broader series of unilateral U.S. trade actions. However, it is not unexpected, as the United States previously signalled its intention to replace existing baseline global tariffs imposed under Section 122 of the Trade Act of 1974 prior to their expiry on July 24.

"Notably, the new Section 301 tariffs include an exemption for USMCA-compliant goods, maintain existing exemptions for certain products, and will be applied at a 10% tariff rate for Canada and a small number of countries, rather than the 12.5% applied to the remaining countries."

For full information on the application of the new tariffs see these links:

- USTR Section 301 Action in Response to the Failure of 60 Economies to Ban Imports Produced with Forced Labor

- U.S. CBP CSMS # 69326983 - Guidance: Section 301 Forced Labor Import Duties

   

 

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