President Donald J. Trump has signed an Executive Order increasing tariffs on Canadian goods from 25% to 35%, effective August 1, 2025. The move comes as part of his efforts to address the growing fentanyl crisis at the US-Canada border.
The national emergency was declared last month under the International Emergency Economic Powers Act (IEEPA), citing Canada’s failure to curb fentanyl and other illicit drugs. This led to retaliatory trade measures from Canada, further complicating bilateral efforts.
Canada has been accused of failing to cooperate with US law enforcement and has responded with its own tariffs on US goods. However, the President remains committed to addressing the crisis, citing his promise to “stop the flood of illegal aliens and drugs into the United States.”
The increased tariff is intended to deter Canadian cartels from producing and trafficking fentanyl and other illicit substances. A recent study found that Canada’s domestic production of fentanyl has increased significantly, with some labs producing up to 66 pounds weekly.
The move also aims to put pressure on Canada to take action against the Mexican cartels operating in its territory, which are blamed for the rise in fentanyl production. The President has vowed to hold Canada accountable for its role in the crisis and will continue to push for cooperation between the two nations.
Source: https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-amends-duties-to-address-the-flow-of-illicit-drugs-across-our-northern-border