ExecutiveOrdersEO
EO 14325Executive OrderTrump 47 · R

Executive Order 14325

Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border

This executive order increases the additional ad valorem tariff rate on certain Canadian goods from 25% to 35%, effective August 1, 2025, citing Canadian retaliation and inadequate cooperation on fentanyl interdiction. It also establishes a 40% penalty rate for transshipped goods evading duties and mandates semi-annual publication of circumvention facility lists.

Federal Register Open PDF 90 FR 37957

Impact dates

  1. First semi-annual publication of circumvention countries and facilities list

  2. 35% tariff rate takes effect on goods entered for consumption or withdrawn from warehouse

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Steel & aluminumAutosOil & gasAgricultureChemicalsOther industrial

Mechanisms

TariffBan / prohibition

Role pressure

  • AdverseImporter — Faces immediate 35% additional duty on Canadian goods, increasing costs and requiring rapid supply chain adjustments
  • AdverseDownstream manufacturer — Higher input costs from Canadian suppliers; potential scarcity if suppliers exit US market; 40% transshipment risk for alternative sourcing
  • MixedDomestic producer — Potential competitive benefit from higher import costs offset by retaliatory Canadian duties and integrated supply chain disruptions
  • AdverseTrading-partner exporter — Canadian exporters face 35% tariff wall, potential loss of US market share, and risk of being named on circumvention lists

Geographies

USCA

Exposure dates

  • — 35% tariff rate takes effect on goods entered for consumption or withdrawn from warehouse

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

MMM3MALBAlbemarleAAAlcoaAAPLAppleADMArcher Daniels MidlandBASFYBASFBGBungeCATCaterpillarCENXCentury AluminumLNGCheniere EnergyCVXChevronCLFCleveland-CliffsCOPConocoPhillipsCTVACortevaDOWDowDDDuPontXOMExxon MobilFFordFCXFreeport-McMoRanGEVGE VernovaGMGeneral MotorsHONHoneywellHYMTFHyundai MotorLYBLyondellBasell

Confidence: high · Policy alerts

Key directives

  • Increase additional ad valorem duty from 25% to 35% on certain Canadian products effective August 1, 2025
  • Modify HTSUS to reflect new tariff rates
  • Impose 40% ad valorem rate on transshipped Canadian goods evading duties
  • CBP to deny mitigation or remission of penalties on transshipped goods
  • Secretary of Commerce and Secretary of Homeland Security to publish semi-annual list of circumvention countries and facilities
  • Secretary of Homeland Security to monitor northern border and recommend further action if Canada fails to cooperate or retaliates

Who is ordered

Timeline

Immediate

  • Tariff rate increase to 35% effective 12:01 a.m. EDT August 1, 2025 for goods entered or withdrawn from warehouse

Near term (90d)

  • HTSUS modifications by Secretary of Homeland Security
  • Initial monitoring reports and consultations on northern border situation

Long term

  • Semi-annual publication of circumvention facility lists beginning within 6 months
  • Ongoing monitoring and potential further presidential action based on Canadian cooperation

Risks & tensions

  • Escalating trade war with Canada risks broader economic disruption to integrated North American supply chains
  • 40% transshipment penalty creates significant compliance burden and enforcement uncertainty for importers
  • Semi-annual facility blacklist may have extraterritorial reputational and commercial effects beyond direct tariffs
  • Retaliation clause (Sec. 2(d) of EO 14193) creates potential for further tit-for-tat escalation
  • Energy products remain at 10% rate, but ambiguity about which products fall under 'energy or energy resources' may create classification disputes
Executive Order 14325: Amendment to Duties To Address the Flow of Illicit Drugs Across Our Northern Border · Executive Orders