Trump tariffs to combat fentanyl trafficking draw retaliatory tariffs from Canada and Mexico

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To combat the growing opioid crisis, President Donald Trump expanded a national emergency declaration to include the influx of illicit drugs and human trafficking through the northern and southern borders.

The administration has imposed new tariffs on Canadian, Mexican, and Chinese imports, in response to what it calls insufficient action by the Canadian government to stem the flow of fentanyl and other dangerous narcotics into the United States.

The Trump Administration cited the devastating effects on American communities, public health systems, and law enforcement agencies. Trump said that drug trafficking organizations operating in Canada and Mexico, in coordination with transnational cartels, have facilitated the smuggling of fentanyl, methamphetamine, and other narcotics into the U.S. through clandestine routes, exacerbating the country’s opioid epidemic.

In a statement issued by the White House, President Trump emphasized the urgency of the crisis: “A Nation without borders is not a nation at all. I will not stand by and allow our sovereignty to be eroded, our laws to be trampled, our citizens to be endangered, or our borders to be disrespected anymore.”

Canadian officials have failed to dedicate adequate resources to counteract drug trafficking and money laundering operations linked to fentanyl production, particularly in British Columbia, which is adjacent to Southeast Alaska. In communities of Haines and Skagway, where Alaskans drive to Whitehorse, Yukon to get food and supplies, the tariffs will have an impact on everything from household goods to building supplies unavailable elsewhere.

New duties of 10% will be placed on all imports from China along with 25% on imports from Mexico and Canada, with the exception of oil, gas, and electricity, which are set at 10%.

Mexico and Canada responded with tariffs of their own. Canada’s outgoing Prime Minister Justin Trudeau said he will put a 25% tariff on up to $155 billion in U.S. imports. Mexican President Claudia Sheinbaum called allegations that the Mexican government has entanglements with criminal cartels “slander” and directed her officials to come up with retaliatory tariffs.

Reports from Canada’s Financial Transactions and Reports Analysis Centre highlight a rising trend in domestic fentanyl production and its growing international distribution.

While much of the public debate has centered on the U.S.-Mexico border, the administration has pointed to mounting evidence that Mexican cartels are establishing fentanyl synthesis labs within Canada, further fueling the crisis. Recent seizures by U.S. Customs and Border Protection indicate that, although less fentanyl enters from Canada compared to Mexico, even small amounts of the highly potent drug can have devastating effects. The White House cited data showing that the fentanyl trafficked across the northern border last year had the potential to kill 9.5 million Americans.

To ensure compliance from Canada and Mexico, Trump has invoked the National Emergencies Act and the International Emergency Economic Powers Act to implement strict economic measures. Among them:

  • 25% tariff on all Canadian and Mexican imports, with exceptions outlined in federal guidelines.
  • 10% tariff on Canadian and Mexican energy resources, as defined in Executive Order 14156.

Tariffs will take effect Tuesday, Feb. 4, 2025, applying to all goods entering the U.S., with specific exemptions for shipments already in transit before Feb. 1

The rates of duty established by his order are in addition to any other duties, fees, exactions, or charges applicable to such imported articles. 

“Should Canada retaliate against the United States in response to this action through import duties on United States exports to Canada or similar measures, the President may increase or expand in scope the duties imposed under this order to ensure the efficacy of this action,” the statement from the White House said.

The imposition of tariffs on Canadian imports marks an escalation in trade tensions between the two nations. Canada is the United States’ second-largest trading partner, and these measures could have profound economic consequences on both sides of the border. Experts predict retaliatory tariffs from Canada, further straining diplomatic relations.

Critics argue that the administration’s approach could disrupt key industries, including automotive, agriculture, and energy sectors, potentially driving up consumer prices. Meanwhile, supporters of the policy view it as a necessary step to force Canada to take stronger action against illicit drug trafficking.

With this sweeping directive, the Trump Administration has made it clear that it considers cross-border drug trafficking from Canada and Mexico a national security threat.

As the February 4 deadline approaches, the administration has signaled its readiness to impose further penalties should Canada fail to demonstrate tangible progress in addressing the issue.

2 COMMENTS

  1. A less expensive solution is this: pass a law declaring the trafficking, manufacture, and use of fentanyl to be premeditated murder, then execute them. Transnational? Fentanyl is an act of war. Let’s call it what it is.

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