Fentanyl is an opioid analgesic used in the management of severe pain. It is 50 to 100 times more potent than morphine. However, because it affects the central nervous system and alters brain function, resulting in changes in perception, mood, consciousness, and behavior, it is also used and abused as a psychoactive drug. Fentanyl and other opioids have fueled the drug crisis and the more specific opioid overdose epidemic in the United States.
Reports from the U.S. Drug Enforcement Agency and the U.S. Centers for Disease Control and Prevention noted that illegally made fentanyl and fentanyl analogs has become the dominant substances in the third wave of the opioid overdose epidemic. Additional reports indicated that fentanyl overdose is now the leading cause of death for Americans ages 18 to 45. Further data from 2022 showed that it was killing 200 individuals per day.
Hence, due to the seriousness of the opioid overdose epidemic, including the widespread use and misuse of fentanyl, the U.S. government has taken several measures to address the issue. One of these centers on targeting the source by reducing the supply. Donald Trump, upon assuming office in January 2025, rolled out tariffs to Canada and Mexico to force their governments to enact and enforce domestic policies that will disrupt relevant supply chains.
Fentanyl in America and the Fentanyl Supply Chain: Who is Making It and How Does It Get in the United States?
Precursors from China and Final Products From Mexico, India, and Canada
Fentanyl is a Schedule II controlled substance under the U.S. Controlled Substances Act. Access requires a prescription. It is manufactured by several pharmaceutical companies in different formulations. These include Johnson & Johnson, Mallinckrodt Pharmaceuticals, Pfizer, and Teva Pharmaceuticals. There are production facilities located in the U.S. and other countries with strict regulatory oversight like Belgium, Germany, and The Netherlands.
However, when it comes to its use as a recreational substance, illicit fentanyl is produced outside the U.S. and trafficked into the country. China was the main producer of finished fentanyl and precursor chemicals up until 2019. However, in response to international pressure, the Chinese government banned fentanyl-class substances in 2019, but Chinese chemical manufacturers still produce precursor chemicals, which are shipped to Mexico for final synthesis.
Mexico has since become a main hub for illicit fentanyl production. Drug cartels like the Sinaloa Cartel and Jalisco New Generation Cartel receive fentanyl precursors from China and manufacture finished fentanyl in clandestine laboratories. India has also become a global supplier of fentanyl precursors. Several chemical companies and criminal organizations in the country have also ventured into the production and distribution of illicit finished fentanyl.
Canada has been accused by Trump of being one of the main sources of illicit fentanyl trafficking in the U.S. However, according to data from the U.S. Customs and Border Protection, the U.S. government sized only 43 pounds of fentanyl at the Canadian border in 2024, while about 21100 pounds were sized at the Mexico border. Figures from 2021 to 2024 also showed that more than 95 percent of all fentanyl seizures occurred at the Mexico border.
However, illegal fentanyl labs still operate in Canada. The New York Times reported that 47 labs were dismantled by Canadian law enforcement in the last 6 years. Intel from the Financial Transactions and Reports Analysis Centre of Canada noted the increasing involvement of organized criminal groups in Canada. This was verified through a review of transactions showing surging imports of chemical precursors and lab equipment from China.
Explaining and Understanding the Global Fentanyl Supply Chain in a Nutshell
The inflow of illicit fentanyl in the U.S. is part of the global illicit fentanyl trade. The U.S. is one of its biggest consumers where this drug has been at the center of its ongoing opioid crisis. Other countries have been experiencing similar problems with illegal fentanyl use. The drug toxicity crisis in Canada is being fueled by synthetic opioids like fentanyl. Media organizations have reported increasing cases in Israel and European countries like Germany and Poland.
Nevertheless, in tracing the exact origin of illegal fentanyl, closed-source and open-source intel reports point to China. The country has remained a significant source of precursor chemicals despite domestic government efforts. However, because of the increasing crackdowns in China, India has fast become another source of precursor chemicals since 2019 due to its extensive chemical and pharmaceutical industries and comparatively lenient regulations.
Precursor chemicals are then trafficked to countries like Mexico where clandestine laboratories operated by drug cartels or transnational criminal organizations synthesize these raw materials into final fentanyl. There are also clandestine labs in Canada and the U.S. but the legal environment prevents them from operating at a scale. Mexico remains the hub of illicit fentanyl production. The country is home to large and advanced laboratories and even makeshift ones.
The final product is then smuggled to the U.S. The most common trafficking routes are through the official land border crossings in California and Arizona. Note that fentanyl is more efficient to transport than other substances like heroin and cocaine because it is more potent. This means that smugglers can traffic them in smaller quantities to avoid detection. Even minimal amounts can be divided into thousands of doses. A kilogram can yield millions in profits.
Reports from law enforcement agencies have identified various strategies used in smuggling. The most common ones are sophisticated concealment methods that involve using passenger vehicles and commercial trucks or comingling with legitimate goods. Data from the CATO Institute showed that 89 percent of convicted fentanyl traffickers in 2022 were U.S. citizens while 93 percent of seizures in 2023 occurred at legal crossing points or interior vehicle checkpoints.
FURTHER READINGS AND REFERENCES
- Bier, D. J. 23 August 2023. “U.S. Citizens Were 89% of Convicted Fentanyl Traffickers in 2022.” CATO Institute. Available online
- Centers for Disease Control and Prevention. 2024. “Understanding the Opioid Overdose Epidemic.” Overdose Prevention. U.S. Centers for Disease Control and Prevention. Available online
- Customs and Border Protection. 2025. Drug Seizure and Statistics. U.S. Customs and Border Protection. Available online
- Financial Transactions and Reports Analysis Centre of Canada. 2024. Operational Alert: Laundering the Proceeds of Illicit Synthetic Opioids. Financial Transactions and Reports Analysis Centre of Canada. Available via PDF
- Isa, V. 6 February 2025. “What to Know About Canada’s Role in the Fentanyl Crisis.” The New York Times. Available online
- National Institute on Drug Abuse. 2024. Drug Overdose Deaths: Facts and Figures. U.S. Department of Health and Human Services, National Institute on Drug Abuse. Available online
- Wang, C. and Lassi, N. 2022. “Combating Illicit Fentanyl: Will Increased Chinese Regulation Generate a Public Health Crisis in India? In Frontiers in Public Health. 10. Frontiers Media SA. DOI: 3389/fpubh.2022.969395