The White House said fentanyl seizures at the northern border this year have already exceeded the combined totals of the previous three years, with two months still left in the fiscal year.
President Donald Trump on Wednesday signed an executive order increasing tariffs on Canadian imports from 25 opercent to 35 percent, citing what the White House called a worsening national emergency fueled by fentanyl and other illicit drugs flowing into the US across the northern border.
The new tariff rate, set to take effect August 1, 2025, comes in response to what the administration described as Canada’s "continued inaction" in on the production and trafficking of synthetic opioids and its “retaliatory” measures against earlier US trade actions.
The White House said fentanyl seizures at the northern border this year have already exceeded the combined totals of the previous three years, with two months still left in the fiscal year.
“This escalating crisis demands decisive action,” the administration said in a statement. “Canada has failed to arrest traffickers, seize illicit drugs, or cooperate with US law enforcement, despite repeated warnings.”
According to the White House, Canada-based trafficking networks now operate so-called “super labs” in both rural and urban areas of western Canada, some of which are capable of producing between 44 and 66 pounds of fentanyl each week. The drugs, officials say, are often linked to Mexican cartels who have expanded operations inside Canada’s borders.
Goods that qualify for tariff-free treatment under the United States-Mexico-Canada Agreement (USMCA) will remain exempt from the new rate. However, products transshipped to evade the 35% tariff will be hit with a separate 40 percent duty.
Trump first declared a national emergency under the International Emergency Economic Powers Act (IEEPA) shortly after returning to office, targeting both the illegal drug trade and related cross-border security issues. In February, he imposed an initial 25 perent tariff on Canadian imports. By March, the White House said it had determined Canada had failed to take adequate steps to cooperate, prompting Wednesday’s escalation.
Trump’s executive action marks a sharp escalation in trade tensions between the two allies and reflects his administration’s broader strategy of linking national security issues—particularly the opioid crisis—with trade policy.
“President Trump is keeping his promise to stop the flood of illegal aliens and drugs into the United States,” the statement added.
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