Jeffrey Miron
On February 1, 2025, the White House announced a series of aggressive tariffs against Canada, Mexico, and China (since adjusted in numerous ways). One ostensible justification for the tariffs is to combat fentanyl smuggling. According to the statement, Customs and Border Protection seized more than 21,000 pounds of fentanyl at American borders last year, a drug that contributes to over 75,000 overdose deaths annually.
This approach will fail; fentanyl smuggling occurs because fentanyl is illegal, and higher tariffs do nothing to reduce the incentives prohibition creates for illicit trade.
Prohibition also spreads violence and corruption, both domestically and in source countries. Underground markets also impede quality control because consumers must guess the potency or composition of the drugs they consume, quadrupling drug-related poisonings and increasing emergency room visits by 60 percent in destination countries. A legal market would reduce these risks dramatically.
In short, punitive tariffs are not a solution to the problem of fentanyl smuggling. Instead, the U.S. should legalize not just fentanyl but all drugs. This would eliminate the black market and its attendant adverse consequences.
This article appeared on Substack on March 26, 2025. Jonah Karafiol, a student at Harvard College, co-wrote this post.