Amendment To Duties To Address The Flow Of Illicit Drugs Across Our Northern Border

The order increases trade penalties on Canada over fentanyl enforcement and Canadian retaliation, while strengthening enforcement against tariff evasion.

What the order does ​

• Raises the additional tariff on covered Canadian products from 25% to 35%, effective August 1, 2025.
• Keeps existing exemptions for qualifying USMCA goods and leaves separate tariff treatment for Canadian energy resources and potash unchanged.
• Applies a 40% additional duty, other applicable charges, and nonwaivable penalties to non-USMCA Canadian goods transshipped to evade tariffs.
• Directs officials to publish every six months a list of countries and facilities involved in tariff-circumvention schemes.
• Requires continued monitoring of Canada’s border and drug-enforcement actions and recommendations for further action if Canada fails to respond or retaliates.

Who it affects ​

• U.S. importers of covered Canadian goods that do not qualify for USMCA duty-free treatment.
• Canadian exporters and facilities shipping covered products to the United States.
• Businesses and intermediaries involved in transshipment or tariff-circumvention schemes.