On July 31, 2025, President Donald Trump issued a significant executive order aimed at combating the ongoing public health crisis related to fentanyl and other illicit drugs flowing into the United States from Canada.
The order modifies existing tariffs, raising the additional ad valorem duty on certain goods from Canada from 25 percent to 35 percent.
This decision is part of a broader strategy initiated in Executive Order 14193 in February 2025, which declared a national emergency due to the escalating crisis caused by the influx of illicit drugs.
In that initial order, President Trump cited Canada’s insufficient action against drug trafficking organizations and noted that such circumstances represent an unusual and extraordinary threat to the United States’ national security and economy.
To mitigate these threats, the President had previously enforced additional tariffs on certain Canadian products, specifically targeting items that could be linked to the drug trade.
Executive Order 14231, issued in March 2025, further refined those duties and exempted certain products that qualify for duty-free entry under the USMCA agreement.
However, ongoing reports and recommendations from senior U.S. officials indicated that Canada had not made adequate efforts to address the drug trafficking situation, necessitating a firmer response.
As a result, the newly amended executive order highlights a continued lack of coordination and cooperation from Canada in curbing the influx of dangerous drugs.
In light of Canada’s perceived retaliation through import duties on U.S. exports, the President’s new tariff increase is framed as a necessary step to ensure the efficacy of the initial actions taken.
This new 35 percent tariff will be applicable to goods that do not qualify for exemptions under the USMCA and will take effect starting August 1, 2025.
Additionally, the order introduces stringent penalties for goods determined to be transshipped to evade U.S. tariffs, imposing an even higher 40 percent duty on such items.
U.S. Customs and Border Protection (CBP) will be tasked with enforcing these measures and is directed to operate without leniency towards any attempts at evasion.
Administrative monitoring will be a priority; the Secretary of Homeland Security will be in continual consultation with various senior officials to assess the situation along the northern border.
In conclusion, President Trump’s latest order reflects escalating tensions between the U.S. and Canada amid a concerted effort to combat drug trafficking and enhance national security.
As both countries navigate this uncertain landscape, the implementation of these tariffs signals an aggressive posture in addressing the ongoing drug crisis.
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