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The Senate Should End “National Emergency” Tariffs on Canada

 

The Senate will soon vote on S.J. Res. 37, introduced by Sen. Tim Kaine (D-VA), which would terminate the national emergency declared on February 1 that is the basis for a 10% tariff on energy imports from Canada and a 25% tariff on other goods imported from Canada. While some of those tariffs have since been temporarily paused, the underlying emergency declaration imposing the tariffs remains in effect. 

The national emergency declaration alleges that the failure of Canada to do more to control the flow of fentanyl to the United States constitutes an unusual and extraordinary threat to U.S. national security and foreign policy. It further states that Canada has played a central role in our opioid epidemic. 

According to the evidence, it does not appear that Canada is a major contributor to our fentanyl epidemic. U.S. Customs and Border Protection data show that fentanyl seizures at our northern border account for 0.2% of U.S. fentanyl seizures by weight for the first five months of Fiscal Year 2025. This suggests that the imposition of tariffs is not justified.

In contrast to its role as a bit player in the fentanyl trade, Canada is one of our biggest trading partners for legal goods. And, in addition to being a key U.S. trading partner under the reciprocal zero-tariff United States-Mexico-Canada Agreement (USMCA), Canada is a strong national security ally. The Department of Defense has maintained a Reciprocal Defense Procurement (RDP) Agreement with Canada since 1963. Both countries are members of the North Atlantic Treaty Organization (NATO) and the Five Eyes Intelligence Oversight and Review Council (FIORC). 

Canada is an important supplier of goods that strengthen U.S. security, including crude oil, natural gas, steel, and aluminum. Tariffs that restrict our access to these supplies and increase their cost will weaken our industrial base and undermine our ability to sustain our defense in the event of a national emergency. President Donald Trump has even endorsed the Keystone XL Pipeline, which would facilitate the export of crude oil from Canada to U.S. refineries. Strengthening North American supply chains also bolsters the competitiveness of U.S. companies relative to China-based exporters. 

USMCA provides for zero-tariff reciprocity for most goods traded between the United States, Mexico, and Canada. The agreement passed the Senate by a vote of 89-10. It is in our national interest to respect this mutually beneficial arrangement.