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

Executive Order 2025-02406
Signed on February 2, 2025
TariffsFirst 100 Days
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What it means

Imposes a 25% tariff on most Canadian goods and a 10% tariff on Canadian energy imports, citing Canada's alleged failure to stop drug trafficking across the northern border. The order claims fentanyl and other drugs entering from Canada pose a national security threat.

Expected impact

  • Likely price increases on Canadian imports including lumber, automotive parts, and agricultural products
  • Potential economic strain on US-Canada trade relations worth over $600 billion annually
  • Possible retaliatory tariffs from Canada against US exports
  • Increased border security measures and cooperation on drug trafficking enforcement
  • Financial pressure on Canadian government to enhance anti-drug trafficking efforts

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