Amendment To Duties To Address The Flow Of Illicit Drugs Across Our Northern Border

Authority and Context

• Derived from presidential powers including IEEPA, National Emergencies Act, and Trade Act of 1974.
• Declares a national emergency due to the public health crisis from fentanyl and illicit drugs.
• Criticizes Canada's insufficient action against drug trafficking and related crimes.

Duties Imposed

• Original orders imposed a 25% duty on certain Canadian products and 10% on energy resources.
• Amendment reduces the rate on potash to 10% and exempts products qualifying under USMCA.
• Increases the 25% duty to 35% for specific Canadian products due to Canada's lack of cooperation and retaliation against U.S. actions.

Transshipment and Penalties

• Products that are determined to have been transshipped to evade duties face a 40% duty and possible fines.
• U.S. Customs and Border Protection (CBP) will enforce these penalties with no mitigation allowed.

Monitoring and Recommendations

• The Secretary of Homeland Security will monitor conditions at the northern border and consult with key officials.
• Recommendations for further actions will be made if Canada does not adequately address the drug crisis.

Implementation and Regulations

• Power is granted to the Secretary of Homeland Security to adopt necessary rules and regulations.
• All government departments must cooperate in implementing the order.

Severability Clause

• If any part of the order is found invalid, the rest remains unaffected.

Exemptions and Duties

• The order specifies how additional duties apply, including conditions for exemptions and handling of specific categories of goods.
• Establishes that products qualifying for exemption under certain provisions must still comply with new ad valorem rates.

Official Publication and Implementation Date

• Changes to the Harmonized Tariff Schedule of the United States effective from August 1, 2025.