Congressional Digest

Congressional Digest May 2025 No. 5 Vol. 104
US-Canada Relations Amid Tariffs

Tariffs

PROS & CONS of Implementing Tariffs

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US-Canada Relations Amid Tariffs

How the International Emergency Economic Powers Act affects the US’s relationship with Canada

On Feb. 1, President Donald J. Trump issued Executive Order (E.O.) 14193, stating that “the failure of Canada to do more” to address illicit fentanyl and other drug trafficking “constitutes an unusual and extraordinary threat” to U.S. national security and foreign policy. The E.O. declared a national emergency under the National Emergencies Act and invoked the International Emergency Economic Powers Act of 1977 (IEEPA) to impose a 10% tariff on Canadian energy imports and a 25% tariff on all other Canadian imports. The president subsequently paused implementation of the tariffs on Feb. 3, allowed the duties to enter into effect…

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