WASHINGTON D.C. – U.S. President Donald J. Trump has signed a fresh Executive Order raising tariffs on Canadian goods from 25% to 35%, in what the White House described as a response to an ongoing national emergency stemming from the fentanyl crisis.
The new tariff, set to take effect on August 1, 2025, is the latest measure in Trump’s efforts to pressure Canada into stepping up its cooperation on curbing the influx of synthetic opioids and related substances entering the United States through the northern border.
“Canada has failed to cooperate in curbing the ongoing flood of fentanyl and other illicit drugs, and it has retaliated against the United States for the President’s actions to address this unusual and extraordinary threat to the United States,” the White House said.
The Executive Order, enacted under the International Emergency Economic Powers Act (IEEPA), follows Trump’s earlier declaration of a national emergency tied to the surge in fentanyl-related public health concerns.
Goods that are eligible for preferential treatment under the United States-Mexico-Canada Agreement (USMCA) remain exempt from the revised tariffs. But Canadian goods routed through third countries to dodge the 35% tariff will attract a stiffer 40% transshipment duty.
Canada’s Expanding Role in Drug Trade
The White House has blamed Canada for a growing role in North America’s opioid crisis, citing the operation of drug synthesis labs by Mexican cartels within Canadian territory. A recent study cited by U.S. authorities points to increased domestic fentanyl production in Canada, with far-reaching links in global narcotics markets.
The administration claims that several high-capacity “super labs” in western Canada are capable of producing between 20 and 30 kilograms of fentanyl each week.
The volume of fentanyl seized at the U.S.-Canada border so far this fiscal year has already eclipsed totals from the previous three years combined. The U.S. government estimates the quantity confiscated this year alone could have caused the deaths of more than 16 million Americans due to the drug’s strength.
Despite mounting pressure, the White House says Canada has not made meaningful arrests or significant seizures, nor has it cooperated adequately with American law enforcement agencies. Instead, it has imposed retaliatory trade measures, further straining relations between the two neighbors.
Trump Pushes “America First” Agenda
President Trump maintains that his actions reflect a campaign promise to stem illegal immigration and the inflow of deadly drugs through U.S. borders. He first introduced the 25% tariff in February through Executive Order 14193, giving Canada what he described as “ample opportunity” to confront cartel-linked activity.
In March, after reviewing Canada’s response, Trump moved forward with implementing the tariff. With no perceived improvement, the U.S. is now intensifying the economic pressure.
“Last November, President Trump promised to sign all necessary documents to charge Mexico and Canada a 25% tariff on their imports into the United States,” the White House statement recalled. “Now, President Trump is taking further action to hold Canada accountable for its continued role in the illicit drug crisis.”
The sharp escalation signals a deepening rift in U.S.-Canada relations and adds a volatile trade dimension to a public health emergency with far-reaching consequences.
