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

The order imposes a 25% ad valorem tariff on all articles imported from Canada and a 10% ad valorem tariff on Canadian energy products and energy resources, both effective 12:01 a.m. ET on February 4, 2025. It directs the Secretary of Homeland Security to modify the Harmonized Tariff Schedule of the United States (the official schedule of import taxes) via a Federal Register notice to implement these rates. The tariffs are additive — stacked on top of any existing duties — and duty-free de minimis treatment (a customs exemption for low-value shipments) is explicitly eliminated for all covered Canadian goods. If Canada retaliates against U.S. exports, the President may raise or broaden the tariffs further without additional rulemaking.

The tariffs have no fixed expiration date. They remain in effect until the President individually determines that Canada has taken adequate steps to address the illicit drug and illegal migration crises. The Secretary of Homeland Security must regularly consult with the Secretaries of State, Treasury, and Commerce and the Attorney General to monitor conditions and may recommend additional measures if Canada does not cooperate. Goods that were already loaded onto a vessel or in transit to the United States before February 1, 2025, are exempt from the new duties if the importer certifies that fact to U.S. Customs and Border Protection.

U.S. importers and businesses that rely on Canadian goods, including automotive, agricultural, and energy supply chains. Canadian exporters and the Canadian government. American consumers who purchase goods with Canadian-sourced components. Importers using de minimis exemptions for low-value Canadian shipments, which are now eliminated.

A 25% tariff on all Canadian goods — Canada is among the United States' largest trading partners — immediately raises costs for U.S. businesses and consumers across virtually every sector, from automobiles to groceries to lumber. The 10% energy tariff also raises costs for electricity and fuel imports from Canada.

The Secretary of Homeland Security is the primary implementer, authorized to modify the Harmonized Tariff Schedule via a Federal Register notice that itself serves as the operative legal instrument triggering CBP enforcement. Importers seeking the in-transit exemption must certify eligibility to CBP. There is no statutory sunset — tariffs lift only upon a presidential determination, informed by DHS recommendations after consultation with State, Justice, Treasury, and Commerce. If Canada retaliates, the President can raise rates unilaterally under IEEPA without additional notice-and-comment rulemaking. No duty drawback is available on these tariffs.