Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border

Executive Order 2025-03990
Signed on March 7, 2025
TariffsFirst 100 Days
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What it means

Modifies a previous tariff order on Canadian goods by exempting auto parts and reducing duties on potash from 25% to 10%. This adjustment aims to protect the U.S. automotive industry and its workers by maintaining crucial cross-border supply chains.

Expected impact

  • Preserves integrated North American automotive supply chains, protecting jobs and production capabilities
  • Provides relief to U.S. manufacturers who rely on Canadian automotive components
  • Maintains some pressure on Canada regarding drug trafficking while reducing economic harm to both countries
  • Signals a more balanced approach to addressing border security concerns while protecting vital economic interests
  • Potentially improves U.S.-Canada trade relations by softening the impact of the original February 1st tariffs

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