President Trump has issued an Executive Order amending the so-called fentanyl tariff against Canada.

The order increases the fentanyl tariff from 25% to 35% due to “Canada’s lack of cooperation in stemming the flood of fentanyl and other illicit drugs across our northern border … and Canada’s efforts to retaliate against the United States ….”

This increased rate will go into effect for imports on or after 12:01 am eastern daylight time on August 1, 2025.

The order states that all articles of Canada that do not qualify as originating under USMCA and are determined by CBP to have been transshipped to evade the applicable tariffs shall be subject to a 40% duty, in addition to any fines, penalties, and other duties, fees, taxes, exactions, or charges.

In addition, the order instructs the Secretary of Commerce and the Secretary of Homeland Security in consultation with the USTR to publish every 6 months “a list of countries and specific facilities used in circumvention schemes, to inform public procurement, national security reviews, and commercial due diligence.”

You can read the Executive Order here.