On February 1, 2025, a determination was made regarding Canada's handling of drug trafficking organizations and related criminal activities. It was concluded that Canada's inaction posed an "unusual and extraordinary threat" to the national security, foreign policy, and economy of the United States. In response, authority under section 1702(a)(1)(B) of IEEPA was invoked to impose tariffs on Canadian products.
Following this decision, it has been noted that Canada has initiated measures aimed at addressing illegal migration and drug-related issues through cooperative actions. However, more time is required to evaluate whether these efforts are sufficient to mitigate the identified threats beyond the northern border.
In recognition of Canada's actions, additional tariffs have been paused until March 4, 2025. This pause affects ad valorem rates on various goods as outlined in sections of the Executive Order dated February 1, 2025. During this period, U.S. officials will continue assessing the situation at the northern border.
The order specifies that if conditions worsen or if Canada does not adequately address these crises, further steps including tariff implementation may be taken by the President.
The order includes provisions for severability ensuring that invalidation of any part does not affect other sections. Additionally, it clarifies that nothing in the order should impair legal authorities or functions related to budgetary or legislative proposals and emphasizes no creation of enforceable rights against the U.S.
THE WHITE HOUSE,
February 3, 2025.
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