The United States Drug Enforcement Administration’s latest threat assessment says fentanyl “super laboratories” in Canada are a growing source of concern -- after U.S. President Donald Trump used cross-border traffic in the deadly drug to justify hitting imports of Canadian goods with tariffs.

The annual report released this week says that while the estimated volume of fentanyl coming from Canada is substantially lower than the amount entering the U.S. from Mexico, “these operations have the potential to expand and fill any supply void created by disruptions to Mexico-sourced fentanyl production and trafficking.”

The DEA pointed out that the RCMP dismantled a sophisticated drug lab in British Columbia last October.

“This year’s report indicates progress in the fight against fentanyl and also outlines the increasing challenges we face with the changing landscape of the synthetic drug crisis,” said DEA acting administrator Robert Murphy in a news release Thursday.

“The adulterating of fentanyl with highly potent, dangerous chemicals reminds us that this fight is far from over.”

Trump used the International Economic Emergency Powers Act, also called IEEPA, to declare an emergency over fentanyl trafficking in order to hit Canada with tariffs in March. He partially paused the tariffs a few days later for imports that comply with the Canada-U.S.-Mexico Agreement on trade.

Canada is also being hit with duties on steel, aluminum and automobiles through a different presidential authority to impose tariffs.

Canada took swift action after Trump issued his initial tariff threat late last year by introducing a $1.3 billion border plan and appointing a “fentanyl czar.” Ottawa announced a Canada-U.S. Joint Strike Force and deployed additional helicopters and drones along the border.

The DEA report says that as of spring 2025, about 50 pounds of “Canada-sourced” fentanyl had been seized at the U.S.-Canada border over 2024, while 20,622 pounds were seized at the U.S.-Mexico border.

It’s not clear if the DEA used U.S. Customs and Border Protection data for its analysis. The agency did not respond when asked whether all of the fentanyl cited in the report originated in Canada or why it chose to include Canada in its most recent report.

Canada was not mentioned once in the DEA’s 2024 drug threat assessment. A March report from the Office of the Director of National Intelligence also did not mention Canada in its information about the fentanyl threat.

The RCMP said in March that “there is limited to no evidence or data from law enforcement agencies in the U.S. or Canada to support the claim that Canadian produced fentanyl is an increasing threat to the U.S.”

Trump initially said fentanyl traffic was his reason for imposing tariffs on Canada -- but his list of complaints soon expanded to include trade deficits and defence spending as he called for Canada to become part of the U.S.

The president has softened his tone toward Canada in recent weeks, particularly after a meeting with Prime Minister Mark Carney at the White House. On Monday, while speaking about fentanyl coming into U.S., Trump said it’s trafficked “much more through the southern border.”