Business
BREAKING ALERT: Trump Threatens 25% Tariff on All Goods From Canada and Mexico, Cites Flood of Fentanyl and Illegal Migrants
In a stunning announcement Monday, President-Elect Donald Trump vowed swift action to combat what he described as a surge in fentanyl trafficking and illegal migration at the U.S. borders with Mexico and Canada.
Trump pledged to impose a 25% tariff on all imports from both countries, citing their alleged failure to address the crises. He announced the policy would be enacted through an Executive Order on January 20, the day he officially takes office.
“Thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” Trump said in a statement. He singled out an incoming “unstoppable” caravan from Mexico as emblematic of what he described as the failures of both neighboring countries to address the crisis.
“This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” Trump posted on his Truth Social platform.
The backdrop to Trump’s shocking policy against Canada—long perceived as a strong ally of the U.S.—includes a recent high-profile case against TD Bank in the United States, resulting in a multi-billion-dollar fine. Months prior to Trump’s announcement, David Asher, a former Trump administration official and consultant on DEA investigations related to the TD probe, told The Bureau that U.S. investigators believe the “command and control” for the fentanyl money-laundering networks allegedly cited in the TD case leads directly to Toronto and Vancouver.
These networks—according to Asher—involve transnational Triads laundering cash from fentanyl distributed in America by Mexican cartels, who source their precursors from China.
In an exclusive interview with The Bureau, Asher criticized the Canadian government for inadequate cooperation in broader fentanyl-trafficking and Triad money laundering investigations, pointing to gang leaders in Canada with alleged ties to Beijing. Asher suggested that possible political and financial influences are hampering effective law enforcement in Canada.
“The key thing is the Canadian connection, and in almost all the investigations as far as money laundering, we saw the command control seemed to go back to our network analysis. When we seized their phones, we’d see Canada light up like a Christmas tree, especially Toronto, and also British Columbia,” Asher said.
Regarding allegations that Triads in Toronto and Vancouver are running fentanyl money-laundering networks for Mexican cartels, Asher added: “The question is, what does the Canadian government know, and why haven’t they tried to judicially prosecute?”
Asher emphasized that the failure to disrupt these networks is contributing to the ongoing fentanyl crisis, which claims tens of thousands of lives annually in the U.S. and Canada.
Furthermore, Asher disclosed that U.S. Congressional investigators allege the People’s Republic of China is not only incentivizing fentanyl precursor exports but also methamphetamine sales.
The tariff, Trump emphasized, will remain until Mexico and Canada take what he called their “absolute right and power” to stop the flow of illegal drugs and migrants.
“We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price,” Trump declared.
The announcement has already sparked sharp reactions from political leaders and trade experts. Critics warn that such sweeping tariffs could disrupt North American trade agreements and exacerbate economic tensions with key allies.
This is a developing story. Stay tuned to The Bureau for updates.
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From Pierre Poilievre
From the Frontier Centre for Public Policy
By Ian Madsen
Canada’s growing LNG exports are opening global markets and reducing dependence on U.S. prices, if Ottawa allows the pipelines and export facilities needed to reach those markets
Canada’s LNG advantage is clear, but federal bottlenecks still risk turning a rare opening into another missed opportunity
Canada is finally in a position to profit from global LNG demand. But that opportunity will slip away unless Ottawa supports the pipelines and export capacity needed to reach those markets.
Most major LNG and pipeline projects still need federal impact assessments and approvals, which means Ottawa can delay or block them even when provincial and Indigenous governments are onside. Several major projects are already moving ahead, which makes Ottawa’s role even more important.
The Ksi Lisims floating liquefaction and export facility near Prince Rupert, British Columbia, along with the LNG Canada terminal at Kitimat, B.C., Cedar LNG and a likely expansion of LNG Canada, are all increasing Canada’s export capacity. For the first time, Canada will be able to sell natural gas to overseas buyers instead of relying solely on the U.S. market and its lower prices.
These projects give the northeast B.C. and northwest Alberta Montney region a long-needed outlet for its natural gas. Horizontal drilling and hydraulic fracturing made it possible to tap these reserves at scale. Until 2025, producers had no choice but to sell into the saturated U.S. market at whatever price American buyers offered. Gaining access to world markets marks one of the most significant changes for an industry long tied to U.S. pricing.
According to an International Gas Union report, “Global liquefied natural gas (LNG) trade grew by 2.4 per cent in 2024 to 411.24 million tonnes, connecting 22 exporting markets with 48 importing markets.” LNG still represents a small share of global natural gas production, but it opens the door to buyers willing to pay more than U.S. markets.
LNG Canada is expected to export a meaningful share of Canada’s natural gas when fully operational. Statistics Canada reports that Canada already contributes to global LNG exports, and that contribution is poised to rise as new facilities come online.
Higher returns have encouraged more development in the Montney region, which produces more than half of Canada’s natural gas. A growing share now goes directly to LNG Canada.
Canadian LNG projects have lower estimated break-even costs than several U.S. or Mexican facilities. That gives Canada a cost advantage in Asia, where LNG demand continues to grow.
Asian LNG prices are higher because major buyers such as Japan and South Korea lack domestic natural gas and rely heavily on imports tied to global price benchmarks. In June 2025, LNG in East Asia sold well above Canadian break-even levels. This price difference, combined with Canada’s competitive costs, gives exporters strong margins compared with sales into North American markets.
The International Energy Agency expects global LNG exports to rise significantly by 2030 as Europe replaces Russian pipeline gas and Asian economies increase their LNG use. Canada is entering the global market at the right time, which strengthens the case for expanding LNG capacity.
As Canadian and U.S. LNG exports grow, North American supply will tighten and local prices will rise. Higher domestic prices will raise revenues and shrink the discount that drains billions from Canada’s economy.
Canada loses more than $20 billion a year because of an estimated $20-per-barrel discount on oil and about $2 per gigajoule on natural gas, according to the Frontier Centre for Public Policy’s energy discount tracker. Those losses appear directly in public budgets. Higher natural gas revenues help fund provincial services, health care, infrastructure and Indigenous revenue-sharing agreements that rely on resource income.
Canada is already seeing early gains from selling more natural gas into global markets. Government support for more pipelines and LNG export capacity would build on those gains and lift GDP and incomes. Ottawa’s job is straightforward. Let the industry reach the markets willing to pay.
Ian Madsen is a senior policy analyst at the Frontier Centre for Public Policy.
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