Fact Sheet: President Donald J. Trump Amends Duties to Address the Flow of Illicit Drugs Across our Northern Border
7/31/2025
Action Summary
- Tariff Increase: Raised the tariff on Canadian goods from 25% to 35%, effective August 1, 2025, with a transshipment tariff of 40% for goods routed to evade this measure.
- National Emergency Declaration: Declared a national emergency under the International Emergency Economic Powers Act (IEEPA) to address the public health crisis from fentanyl and other illicit drugs crossing the northern border.
- Canada’s Role in the Opioid Crisis: Highlighted Canada’s failure to curtail drug trafficking, inadequate law enforcement cooperation, and coordination with the U.S., exacerbating the opioid crisis by hosting “super labs” producing large quantities of fentanyl.
- Trade-Related Measures and Retaliation: Noted that Canada has retaliated with trade measures, complicating bilateral efforts, while preferential tariff treatment under the USMCA remains intact for qualifying goods.
- Policy Continuity and Strategic Action: Reaffirms President Trump’s commitment to “putting America first” by taking incremental actions—following earlier tariffs and Executive Order 14193—to hold Canada accountable for its role in the escalating drug crisis.
Risks & Considerations
- The increase in tariffs on Canadian imports from 25% to 35% could have significant economic implications, potentially affecting the cost of goods and services that Vanderbilt University relies on, especially if any supplies or equipment are sourced from Canada.
- There is a risk of strained diplomatic relations between the United States and Canada, which could impact collaborative research projects or academic exchanges involving Canadian institutions.
- The focus on addressing the opioid crisis through trade measures may lead to increased scrutiny and regulation of cross-border activities, potentially affecting international students and faculty from Canada.
- Vanderbilt University may need to consider the impact of these tariffs on its budget and financial planning, particularly if there are increased costs associated with Canadian goods or services.
Impacted Programs
- Vanderbilt’s International Programs may need to reassess partnerships and collaborations with Canadian institutions to ensure compliance with new trade regulations and to mitigate any potential disruptions.
- The Office of Research might experience changes in funding opportunities or collaborative projects with Canadian counterparts, necessitating adjustments in research strategies and partnerships.
- Vanderbilt’s Procurement Office could face challenges in sourcing materials or equipment from Canada, potentially leading to increased costs or the need to find alternative suppliers.
- The Office of Global Safety and Security may need to provide additional guidance and support to Canadian students and faculty affected by these changes in U.S.-Canada relations.
Financial Impact
- The increased tariffs could lead to higher costs for goods and services imported from Canada, impacting Vanderbilt’s operational budget and financial planning.
- There may be a need to allocate additional resources to manage the implications of these tariffs, including potential increases in procurement costs and adjustments to supply chain strategies.
- Vanderbilt University might need to explore alternative funding sources or partnerships to offset any negative financial impacts resulting from the strained U.S.-Canada relations.
- Changes in trade policies could affect the university’s ability to attract and retain international students and faculty, potentially impacting tuition revenue and academic diversity.
Relevance Score: 4 (The executive order presents a need for potential major changes or transformations of programs and financial strategies.)
Key Actions
- Vanderbilt’s Office of Federal Relations should monitor the impact of increased tariffs on Canada, particularly in relation to research collaborations and partnerships with Canadian institutions. Understanding these changes will be crucial for maintaining and adapting international research efforts.
- The Vanderbilt Center for Addiction Research should explore opportunities to engage in research addressing the opioid crisis, potentially securing federal funding aimed at combating drug trafficking and addiction. This could enhance the university’s role in public health and policy development.
- Vanderbilt’s Trade and Economics Department should analyze the economic implications of the increased tariffs on Canada, providing insights into potential impacts on trade and economic relations. This analysis can inform strategic decisions and policy recommendations.
- The Vanderbilt Law School could offer expertise on international trade law and the legal ramifications of the executive order, potentially advising on compliance and advocacy strategies for affected stakeholders.
Opportunities
- The executive order presents an opportunity for Vanderbilt’s Public Policy Studies to engage in policy analysis and advocacy related to international trade and drug policy. By providing evidence-based recommendations, the department can influence policy discussions and contribute to national security efforts.
- Vanderbilt can capitalize on the increased focus on combating the opioid crisis by developing new programs and partnerships with government agencies and non-profits. This could include joint research initiatives, public health campaigns, and collaborative policy development, enhancing Vanderbilt’s reputation and impact in public health.
- The emphasis on national security and foreign policy offers an opportunity for Vanderbilt’s Political Science Department to conduct research on the broader geopolitical impacts of the executive order. This research can provide valuable insights into international relations and trade dynamics.
Relevance Score: 4 (The executive order necessitates major process changes due to its impact on international collaborations and research funding opportunities.)
Timeline for Implementation
Tariff increase set to go into effect on August 1, 2025.
Relevance Score: 5
Impacted Government Organizations
- Office of the United States Trade Representative (USTR): Responsible for negotiating and implementing trade policies and ensuring compliance with agreements such as the USMCA, which is directly affected by the tariff changes.
- U.S. Customs and Border Protection (CBP): Charged with enforcing border regulations and tariffs, CBP will be central to the execution of the new tariff measures at the northern border.
- Department of Homeland Security (DHS): Oversees border security, making it integral in responding to the national emergency related to illicit drug flows mentioned in the directive.
- Department of the Treasury: Plays a key role in implementing economic policies under the International Emergency Economic Powers Act (IEEPA) and managing tariff collections.
- Department of Justice (particularly the DEA): Although not explicitly mentioned, law enforcement agencies like the Drug Enforcement Administration are implicitly impacted due to the focus on curbing the trafficking of dangerous drugs such as fentanyl.
Relevance Score: 2 (A moderate number of Federal Agencies are impacted by the directive.)
Responsible Officials
- N/A – The text does not name any specific officials or agencies to implement the directives.
Relevance Score: 1 (No implementing officials are identified, limiting the directive’s operational reach.)