On February 3, 2025, President Trump issued an executive order imposing ad valorem tariffs on articles that are products of Canada in response to the failure of the Canadian government to take sufficient action against drug trafficking and human trafficking organizations. The order stated that the situation constitutes an unusual and extraordinary threat to national security, foreign policy, and economy of the United States.
The president has paused the implementation of additional 25 percent ad valorem rates of duty and 10 percent ad valorem rates of duty on energy products for a period until March 4, 2025. This pause was intended to assess whether the threat described in the order has abated. The Secretary of Homeland Security will continue to assess the situation at the northern border during this period, and if the crisis worsens or the Canadian government fails to take sufficient action, the president may take necessary steps to address the situation.