The Trump Administration’s focus on illegal drugs has put Mexican cartel activity in Canada under the microscope. This analysis finds that cartel activity in Canada is increasingly a problem and has worsened over the last 2 decades. Based on a case study analysis of drug busts in Canada, both large and small, it is clear that the main products being moved by these organizations are fentanyl, street drugs (cocaine and meth), and illegal tobacco. A conservative estimate on the size of the illicit market for those products is $2.672 billion CAD per year. Not only is the market significant for these products, but the distribution of these products is shifting to online marketplaces/retailers, facilitated by major financial institutions (banks, credit card companies, Interac), and delivered directly to the doors of buyers by Canada Post. With Canada listing Mexican cartels as terrorist organizations, the potential consequences for these institutions are significant.
Does Canada have a problem with Mexican cartel activity within our borders? This is a question that has been front and center, given the Trump Administration’s justification for tariffs being the flow of illegal drugs from Canada to the United States.
Trump Administration senior official Peter Navarro went so far as to say das “Canada has been taken over by Mexican cartels”. And while that comment is on its face untrue, it does beg the question of just how prevalent Mexican cartel activity is in Canada, especially given that in April the U.S.’s Financial Crimes Enforcement Network (FinCEN) flagged $1.4 billion in fentanyl linked suspicious transactions, naming Canada, China, Mexico and India as key touchpoints for global production and laundering.
It is also important to highlight that while Mr. Navarro’s comments are exaggerated, the size and scope of the problem are significant enough that in February of 2025, Canada designated seven transnational criminal organizations, fünf being Mexican cartels, as terrorist organizations.
Pre-2000s:
Mexican cartels like Sinaloa and Arellano Felix had limited activity in Canada, mostly through indirect ties with groups like the Hells Angels in B.C., while Canadian organized crime was dominated by traditional mafias and biker gangs.
2000s:
By 2009, Vancouver became a key transit hub for Mexican cartels, especially Sinaloa, due to its port access. Following Mafia leader Vito Rizzuto’s death in 2013, cartels allied with emerging groups like the Wolfpack. Activity expanded to include cocaine, meth, fentanyl, and cross-border smuggling.
2010s:
Sinaloa grew its influence in eastern Canada, while CJNG and Zetas gained ground in the west. Cartels used migrant workers and exploited Canadian ports for fentanyl precursors from China. Violence rose, and some Canadian criminals dealt with cartels directly in Mexico. A 2019 CBSA review confirmed a modest but real cartel-linked presence.
2020s:
Cartels like Sinaloa and CJNG became entrenched in Canada, involved in trafficking, laundering, and smuggling. In 2024, the RCMP dismantled a cartel-style meth “superlab” in B.C., marking a shift to local drug production.
Canada’s illicit trade is increasingly shaped by the trafficking of fentanyl, traditional street drugs like cocaine and methamphetamine, and contraband tobacco—often coordinated by domestic crime groups and Mexican cartels. Fentanyl, the leading cause of Canada’s opioid crisis, is now primarily produced in-country, with RCMP busts in 2024 revealing superlabs capable of manufacturing millions of doses. Seizures across the country highlight both local production and growing exports to the U.S. and Australia, despite law enforcement efforts. Cocaine use remains widespread, especially among young adults in urban areas, with Canada ranking among the highest globally for per capita use.
Methamphetamine use is concentrated in Western Canada, supported by industrial-scale labs linked to organized crime. Meanwhile, illicit tobacco—accounting for up to 40% of cigarette consumption in provinces like Ontario and Quebec—is largely produced on reserves and smuggled across borders.
The tobacco trade alone is estimated to be worth over $2 billion annually, costing provinces billions in tax revenue. Evidence shows that cartels use this trade to finance broader criminal operations, including drug and weapon trafficking. Together, these illicit markets form a complex, transnational ecosystem, posing serious challenges to public health, safety, and governance.
Illegal drug markets in Canada are increasingly shifting online, driven by synthetic drugs like fentanyl. These digital platforms mimic legal e-commerce sites, offering discreet shipping via Canada Post or private couriers and accepting payments through E-Transfer or credit cards. Online sales provide anonymity, convenience, and broader reach, attracting users and enabling organized crime groups (OCGs) to bypass street-level dealers. A 2022 Public Safety Canada report highlights OCGs’ use of social media, the dark web, and encrypted platforms to reduce risk and maintain operations even under law enforcement pressure.
These platforms also sell illicit tobacco and vaping products. Examples include:
Dark Web Supplies: Sells cocaine, meth, illegal tobacco, cannabis, vapes; ships via Canada Post with credit or E-Transfer payments.
Cosmiq: Offers cocaine, LSD, MDMA, cannabis edibles, and more; paid via E-Transfer with “lab-tested” claims.
MoonHaus: Sells psychedelics and illegal tobacco; accepts Bitcoin, PayPal, and other payments.
Buy MDMA Canada: Offers MDMA, ketamine, LSD, illegal tobacco; E-Transfer only.
Buy Psychedelics Canada: Lists psychedelics, vaping products, and tobacco; ships discreetly via Canada Post.
With Mexican cartels now listed as terrorist organizations in Canada, the sale of cartel-linked drugs through online platforms raises serious legal concerns. Under the Criminal Code, anyone knowingly supporting a terrorist group—including through financial services, shipping, or online payments—could face severe penalties, including up to life imprisonment. This applies not only to the retailers but potentially to banks, credit card companies, Interac, and Canada Post, all of which facilitate these transactions.
Sections like 83.18 (participation), 83.19 (facilitation), 83.2 (committing offences for a terrorist group), and 83.08 (handling terrorist property) could be invoked. Financial institutions and platforms accepting public-facing payments (e.g., E-Transfers or credit card processing) are expected to act, especially when vendor emails are openly listed. Canada Post’s ongoing role in shipping these products also makes it a key enabler of the illicit trade.
While it is not true that “Canada has been taken over by Mexican cartels” as suggested by senior Trump officials, it is clear that cartel activity in Canada is moving specific products, shifting to online marketplaces, and increasing their footprint in Canada. The Trump Administration’s focus on criminal activity, and their claim, can be appropriately summed by Former federal minister Jason Kenney’s response:
“Yes, we must do more to combat the biker gangs, Chinese triads, Mexican cartels, smuggling / illegal networks operating on certain First Nations reserves, etc. We need to end the failed experiment of legalizing hard drugs, increase CBSA resources & inspections, end the Liberals’ revolving door justice system, tighten the porous US border against gun & drug imports, etc. But to claim that “Canada has been taken over by Mexican cartels” is obviously and utterly ridiculous.”
The new Liberal Government will have to tackle the problem of cartel activity and the products they profit off of seriously, not just for our relationship with the United States, but for public safety coast to coast. The financial institutions implicated and Canada Post will also have to do their part in cracking down on facilitating these transactions, because if they don’t, potential criminal terror related charges could cripple their operations.
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