North Americans Hit With Hefty Tariffs… Because of Fentanyl
In a twist of trade‑tornadoes, both Canada and Mexico are slated to carry a sharp, 25‑percent tariff on certain goods— the result of President Trump’s anti‑fentanyl circus.
What’s the deal?
- Canadian response: Tariffs hit up to 25% on imports tied to illicit drug routes.
- Mexican action: A parallel 25% barrier on similar goods—yes, they’re pulling the same lever.
Why the big brakes on trade?
Trump’s administration cranked up these fees as a way to stifle fentanyl smuggling across borders. The logic? Make shipping more expensive, deter the flow, and put pressure on bad actors.
The trade‑tension fallout
- Canadian businesses uneasy: higher costs mean pricier products for shoppers.
- Mexican exporters feeling the pinch: “What’s next?” is a frequent chorus.
- Consumers in both countries holding their breath—do we want to spend more, or keep the drug threat at bay?
Bottom line
So, if you’re a Canadian or Mexican importer, get ready for a bit of a loading fee on items that could be stepping stones in a drug smuggling operation… or a better way.
US‑Canada Trade Talks Get A Fresh Start After Tax Back‑Out
Quick recap: Canada pulled the plug on its plan to hit US tech giants with a tax, and both sides are back at the negotiation table. The whole drama unfolded after President Donald Trump declared the tax a “direct and blatant attack” on the U.S., igniting a brief trade spat.
What Went Down?
- Canada’s Digital Services Tax (DST) was a 3% levy on revenue from Canadian users, targeting the likes of Amazon, Google, and Meta.
- It would have kicked in on Monday and applied retroactively, meaning U.S. companies could face a hefty $2 billion ($1.71 billion euro) bill by month‑end.
- Trump called the DST a “direct and blatant attack,” and so he halted talks with Canada over the issue.
Back in the Fold
On Sunday, Prime Minister Mark Carney reported in a statement that the two leaders had dialed each other and agreed to resume negotiations. Canada promised to rescind the DST in anticipation of a deal, aligning the timeline to a July 21, 2025 deadline set at the G7 Leaders’ Summit.
Carney added that the announcement would “support a resumption of negotiations” and that a 30‑day deadline was a big deal from the G7 summit in Alberta where Trump was in town.
Why This Matters
- Canada’s tax was the first rock‑solid step towards a potential trade breakthrough with the U.S., trailing its earlier “tax‑craig” accusations.
- Trump’s stance, especially his rotating suggestion that Canada could be absorbed as a U.S. state, had turned the progression into a roller coaster.
- Now, with the tax shelved, there’s hope that both countries can move past the roadblock and bring the trade talks back into motion.
With a fresh push on the table, watch out for updates—things are moving fast, and the next chapter of the US‑Canada trade story could have even more punchlines.