in effect
This is Executive Order 14193, signed February 1, 2025, using emergency powers (chiefly the International Emergency Economic Powers Act and the National Emergencies Act). It declares that the flow of fentanyl and other illicit drugs across the U.S.–Canada border is a national emergency and directs new tariffs on Canadian goods to pressure Canada into stronger enforcement cooperation.
It adds a 25% tariff on most products of Canada, and a lower 10% tariff on Canadian energy and energy resources, on top of any existing duties. These rates apply to goods entered for consumption on or after 12:01 a.m. Eastern on February 4, 2025, with a narrow exception for goods already loaded onto a vessel or in final transit before 12:01 a.m. Eastern on February 1, 2025 (if the importer certifies this to Customs and Border Protection). The order also removes the duty-free “de minimis” exemption for these goods, allows no duty drawback (refunds), and directs the Secretary of Homeland Security to update the Harmonized Tariff Schedule to put the rates into effect. The order states the tariffs will be removed once the President determines Canada has taken adequate steps, and warns that rates may be increased if Canada retaliates.
U.S. importers of Canadian goods pay the new tariffs, which raises costs on a wide range of Canadian products, including energy. The Government of Canada is the target of the pressure, since the order ties tariff removal to its enforcement actions. Several U.S. agencies — led by Homeland Security, with Treasury, State, Commerce, and the Justice Department — are tasked with implementing, monitoring, and reporting on the measures.