Imposing Duties To Address the Flow of Illicit Drugs Across Our Northern Border
Executive Order 14193 imposes a new economic pressure on Canada to curb illicit drugs flowing into the United States, particularly fentanyl and other opioids across the northern border. Framed as an expansion of a national emergency, the order authorizes ad valorem tariffs on certain Canadian-origin articles as a tool to compel Canada to cooperate with U.S. enforcement efforts. The general tariff is 25%, with a separate 10% duty for energy resources, and applies to goods entered for consumption after February 4, 2025 (with limited pre-notice exemptions for shipments loaded before February 1, 2025 under specific conditions). The Secretary of Homeland Security would modify tariff schedules (HTSUS) and coordinate with other agencies to implement the plan, while promising to remove tariffs if Canada takes adequate action. The measure is framed as a temporary and conditional response to an extraordinary threat, with ongoing reporting to Congress and mechanisms for further action if Canada does not cooperate.
Key Points
- 1Declares an expanded national emergency to address the northern border drug flow and authorizes the imposition of ad valorem tariffs on articles that are products of Canada to pressure Canada to act on illicit drugs and related public health risks.
- 2Tariff structure: a general 25 percent ad valorem duty on most Canadian-origin articles, and a 10 percent ad valorem duty on energy resources, with effective dates starting February 4, 2025; some pre-February 1, 2025 shipments loaded earlier may be exempt if importer certifies to CBP.
- 3Modifications and administration: the Secretary of Homeland Security must modify the Harmonized Tariff Schedule (HTSUS) via Federal Register notices to implement the tariffs; duties are in addition to any other applicable duties or charges; no drawback (refund) of these duties is allowed.
- 4Energy carve-out: separate 10 percent duty for energy or energy resources, subject to the same timing and certification exceptions as the general tariff.
- 5Conditions for removal and further action: DHS, in coordination with other senior officials, must monitor the situation and remove tariffs once Canada takes adequate cooperative enforcement action; if Canada fails to act, the government may expand or adjust duties or pursue additional measures.
- 6Implementation and oversight: DHS, Treasury, the Attorney General, Commerce, and senior national security officials are empowered to take necessary actions to enforce the order, with ongoing reporting to Congress regarding the national emergency and its implementation.