Trump has justified tariffs on goods from Canada, the top U.S. export market, by accusing it of failing to stop the cross-border flow of fentanyl, even though U.S. government data shows Canada accounts for only 1% of the fentanyl that enters the United States.

While Mexico received a temporary reprieve, Trump followed through on the Canadian tariff hike . According to Forbes, only 19.1 percent of Canadian goods are USMCA-compliant in 2025, a sharp drop from 37.9 percent in 2024, suggesting most exports will be impacted by the hike unless exempt.