- Canada mostly dodges the tariff because of an exemption for CUSMA-compliant goods; roughly 90% of Canadian exports qualify.
- The tariff's timing and exemptions suggest it is not truly about forced labour: the exemption list was built around American supply needs.
Experts are calling former President Trump's latest tariff a 'sham,' arguing it is merely a rebranding of the previous 'Liberation Day' tariffs.
CFIB CEO Dan Kelly stated, “Look, this is effectively a renaming of the Liberation Day tariffs, and now they’re linking it to another flimsy justification.”
Holmes added, “They’re just finding a way to get around the court to recreate Liberation Day.”
Scott Lincicome from the Cato Institute emphasized that while forced labor must be addressed, the administration's rationale is inadequate, calling it a “sham.”
Notably, Canada has managed to avoid most of the new tariffs due to exemptions under the Canada-U.S.-Mexico Agreement (CUSMA).
Holmes estimated that roughly 90% of Canadian goods exported to the U.S. qualify as CUSMA-compliant. This exemption list was reportedly tailored to American supply needs, including items like coffee, sugar, and semiconductor equipment, rather than addressing the actual risks of forced labor, according to Appleton.
In a recent analysis, Lincicome criticized the trade investigations as predetermined, stating that the “remedy is both ridiculously blunt and wildly out of proportion.”
“Roughly 90% of Canadian goods qualify for the exemption under CUSMA rules of origin, according to trade estimates. Critics argue the exemption list was built around American supply needs—such as coffee and semiconductor equipment—rather than where forced labor risk actually sits, calling the tariff 'both ridiculously blunt and wildly out of proportion'.”
