Trade Wars and the Drug War: How U.S. Tariffs Are Shaping Mexico’s Fentanyl Crisis

Katherine Dorrer

International News Editor

The United States’ battle against fentanyl has taken on a new dimension as economic policies, particularly tariffs, intersect with security efforts to curb drug trafficking. Despite billions in U.S. security aid, cartel influence persists, with most fentanyl entering the U.S. through the southern border. In 2024 alone, over 21,000 pounds of fentanyl were seized at U.S. entry points, reports The Associated Press. 

In response, the Trump administration intensified its stance against Mexican drug cartels, designating several groups as Foreign Terrorist Organizations and Specially Designated Global Terrorists. This action was part of a broader strategy that tied trade policy to national security concerns. Shortly after taking office, President Donald Trump reaffirmed his strong stance on tariffs, calling them “the most beautiful word in the dictionary.” Just hours after being sworn in, he announced a 25 percent tariff on imports from Canada and Mexico, citing their failure to curb drug trafficking. On February 1, he signed an executive order putting these tariffs into effect, alongside a 10 percent tariff on Chinese goods, explains The New York Times. 

However, just two days later, Trump agreed to delay the tariffs on Canada and Mexico for 30 days. By February 27, he declared that the tariffs would proceed as planned on March 4, insisting that drugs were still pouring into the U.S., reports the New York Times. Yet, two days later, many of the tariffs on Canadian and Mexican goods were suspended. 

Mexican President Claudia Sheinbaum withheld any announcement of retaliatory actions in response to Trump’s potential 25 percent tariffs on Mexican goods, preferring to address the issue at a scheduled rally. While this was happening, Trump announced a delay on tariffs for goods under the United States-Mexico-Canada Agreement (USMCA), postponing the measures until April 2. Mexico’s Economic Minister, Marcelo Ebrard, revealed that the Mexican government was engaged in intensive negotiations with the U.S. to resolve the tariff issue, signaling a potential shift in diplomatic relations between the two nations, Reuters reports. 

In an effort to pressure Mexico into taking stronger anti-drug measures, Trump tied trade policy directly to fentanyl trafficking. On March 3, the White House issued a fact sheet announcing the potential imposition of a 25 percent tariff on all imports from both nations unless they took more decisive action. Secretary of State Marco Rubio emphasized that while U.S.-Mexico cooperation on border security and migration had reached “unprecedented levels,” the ongoing drug smuggling crisis remained unresolved, explains Reuters.

This pressure coincided with Mexico’s political transition. President Sheinbaum, who had recently taken office, faced growing demands from Washington to intensify the fight against cartels. Sheinbaum’s administration signaled a shift towards a more aggressive stance, marking a departure from the policies of her predecessor, Andrés Manuel López Obrador, who had downplayed concerns over fentanyl production despite internal reports confirming its scale, reports The Associated Press

Beyond Mexico, the fentanyl crisis has global implications. China, the primary supplier of fentanyl precursor chemicals, continues to face U.S. scrutiny for its role in the epidemic. Although Chinese companies legally manufacture these chemicals for pharmaceutical use, they also supply them to Mexican cartels, which then refine and traffic the drugs into the U.S. Despite China’s stated commitment to countering fentanyl trafficking, enforcement remains lax, and Beijing has resisted U.S. demands for stricter regulations on precursor chemicals. Chinese officials have accused the Trump administration of using the fentanyl issue as a pretext to impose tariffs and harm trade relations with China. China’s Foreign Ministry spokesperson Lin Jian stated that politicizing and weaponizing trade over fentanyl would harm U.S. economic interests and credibility, writes NPR. 

Canadian Prime Minister Justin Trudeau criticized President Trump’s claim regarding fentanyl smuggling, calling them “unjustified.” Trudeau highlighted that less than one percent of fentanyl seized at the U.S. border comes from Canada, and highlighted Canada’s $1.3 billion investment in new border security efforts, reports NPR. Despite these efforts, both Canada and Mexico have expressed dissatisfaction with the United States’ connection between fentanyl trafficking and trade barriers.

As the situation unfolds, the coming weeks are likely to bring further updates on tariffs and trade negotiations tied to the fentanyl crisis. The U.S. government has indicated its intention to proceed with tariffs unless Mexico and China take more decisive action to address drug trafficking. In response, both Mexico and Canada have voiced opposition, suggesting potential retaliatory measures.

Image courtesy of Getty Images.