August 1st, 2025 – President Trump issued an Executive Order increasing tariffs on Canadian goods from 25% to 35% in response to Canada’s continued failure to address the flow of fentanyl and other illicit drugs across the northern border and its retaliatory trade actions against the United States. Building on earlier orders, the new directive maintains exemptions under the USMCA but raises penalties for transshipped goods that evade duties, imposing a 40% tariff and additional penalties. The order empowers federal agencies to update the Harmonized Tariff Schedule, enforce compliance, and publish biannual reports identifying facilities involved in circumvention schemes. It directs the Secretary of Homeland Security and other senior officials to monitor Canada’s actions and recommend further steps if progress is inadequate. The President emphasized that these measures are necessary to combat the national emergency posed by drug trafficking and safeguard U.S. security and economic interests.
Read the CSMS update here: CSMS # 65798609 – Update – Additional Duties on Imports from Canada
Read the Executive Order here: Amendment to Duties to Address the Flow of Illicit Drugs Across Our Northern Border – The White House
Read the Fact Sheet here: Fact Sheet: President Donald J. Trump Amends Duties to Address the Flow of Illicit Drugs Across our Northern Border – The White House
Should you have any questions, please contact our Import Compliance team or call us at 518-785-6000.
