On July 31, 2025, an executive order was issued in response to concerns about illicit drug trafficking—such as fentanyl—across the northern border. This order builds on earlier directives, including one from February 1, 2025, which implemented added duties on select imports from Canada.
Key points of the amendment include:
- Increased Import Duties: The ad valorem duty on certain Canadian products has been increased from 25% to 35%. This measure is intended to exert pressure on Canada to enhance its enforcement against drug trafficking.
- Implementation Timeline: The enhanced duties will take effect starting August 1, 2025, for goods entered for consumption after 12:01 a.m. Eastern Daylight Time.
- Transshipping: Canadian goods that fail to meet USMCA origin requirements and are found by U.S. Customs and Border Protection to have been transshipped to circumvent applicable duties will be subject to a 40% ad valorem duty, additional fines or penalties under relevant U.S. law, and all customary import charges, with no eligibility for mitigation or remission.
- Compliance & Further Steps: The President emphasized that should Canada retaliate or fail to take steps determined to be adequate, further measures may be considered, including possible expansions of the applied duties.
- Existing Agreements: The order confirms that products qualifying for duty-free entry under the USMCA will not be subject to the increased duties, preserving certain trade arrangements.
- Oversight and Adjustments: The Secretary of Homeland Security, in collaboration with trade commission officials, is authorized to make necessary modifications to the Harmonized Tariff Schedule to enforce these duties effectively.
For more information:
Executive Order – July 31, 2025 – Amendment to Duties to Address the Flow of Illicit Drugs Across our Northern Border (Includes list of goods impacted)
CSMS # 65798609 – July 31, 2025 – Update – Additional Duties on Imports from Canada
Questions? Contact your Buckland representative or email us at clientsupportca@buckland.com