Squiz Shortcuts - Fentanyl and the opioid crisis

Your Shortcut to… Fentanyl and the opioid crisis

A powerful pain relief drug called fentanyl has been in the news a lot lately, and it’s frequently mentioned as one of the reasons for the US imposing steep tariffs on Mexico, China and Canada. So in this Squiz Shortcut, we’ll look at:

• what the drug is

• why it’s become a huge issue in the US and around the world

• and what it’s got to do with tariffs.

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Squiz the Shortcut

Why am I hearing so much about fentanyl?
Curbing the flow of fentanyl into the US is one of US President Donald Trump’s reasons for imposing tariffs - aka import taxes - on goods from Mexico, Canada and China. He says they’re all countries that the drug, or chemicals to make it, are coming from.

What exactly is it?
It’s an exceptionally strong synthetic opioid used for pain relief.

And how do opioids work?
Opioids are substances that act on tiny receptors on the nerve cells in human brains and bodies called, appropriately enough, opioid receptors. And what happens when humans take opioids is that they bind onto those receptors, and the result blocks pain sensors and triggers feelings that can range from relaxation right through to pleasure and euphoria. 

Would I have heard of any?
Some natural opioids you might have heard of are morphine, codeine, and opium, and they come from the seed pods of the opium poppy plant. Synthetic opioids are manufactured from chemicals that mimic the effects of natural ones. Common examples of those are methadone, pethidine, tramadol, and also of course, fentanyl. 

So is taking fentanyl like taking a pill for a headache?
No, it’s way, way stronger… Pharmacists say it’s approximately 100 times more potent than morphine and 50 times more potent than heroin when it comes to pain relief. 

And is it a new drug?
No… it’s been used in hospitals for around 60 years to treat trauma patients, surgical pain and other cases of chronic pain, and under those conditions it’s considered safe. But it’s super addictive and really potent, meaning the risk of overdose for anyone who sources it illegally is a lot higher than with other drugs. 

How potent are we talking?
As little as 2mg of fentanyl - which reports say is roughly the size of a pencil tip - can be fatal… And while it’s rare to find illegal fentanyl in Australia, it’s a huge problem in the US, where it’s become a major cause of drug-related overdoses.

How big is the problem in the US?
Around 55,000 overdoses there were linked to opioids like fentanyl in 2024. That’s actually a decline of around 30% from where it was the year before, but it still accounts for over 60% of all drug overdoses in the country, which is why it’s been described by US Homeland Security officials as “the single greatest challenge” America faces. And there’s one thing that’s especially concerning to authorities…

What’s that?
US Customs and Border Patrol says fentanyl is increasingly getting mixed in with other illicit drugs before it reaches America, and people don’t know they’re even taking it. That practice has been growing along with the global supply chain over the past decade.

Where is it coming from?
The latest figures show that 98% of the illegal fentanyl in the US is coming in from Mexico via drug cartels, with a small percentage coming from Canada… And US President Donald Trump is trying to put in place measures to curb it.

What’s Trump doing about it?
He’s turning to trade policy as a way to help stop what he and many are calling the “opioid crisis” by putting an economic squeeze on the countries where it's coming from. 

How does that work?
This is where those tariffs we mentioned come in… Trump’s original plan back in February was to put 25% tariffs on all imported goods from Mexico and Canada, and a further 10% on goods from China…

So prices will go up?
That’s usually the end result. Trump wants American consumers to think twice about paying more for imported goods and buy local instead. The exact rate of the tariffs and when they’ll start has since been subject to a lot of change, but the idea remains the same.

What’s that?
Trump’s using the tariffs to put pressure on Mexico and Canada to help stop the flow of fentanyl from those countries to the US. It’s been a major cause of his right through his election campaign, and it dovetails with his hardline stance on illegal immigration.

Why is that?
They go hand in hand because the US Drug Enforcement Agency (the DEA) has evidence that major Mexican drug cartels are behind the bulk of the production and supply of fentanyl into the US. They say that in the past 6 months alone, more than 3,500 tonnes of fentanyl has been seized at America’s southern border. And they also say that the chemicals used to produce the drug are being shipped to Mexico by Chinese companies - often with instructions on how to make the finished product.

Who makes it?
The DEA says cartel members manufacture it in illegal labs and then smuggle it over the border... But before it gets that far, Trump wants more done at the source to stop it. 

Is that happening?
Sort of… While the governments of Mexico, Canada and China say they’ve put in place measures to address the problem, they’re also pushing back. Mexico has sent 10,000 troops to its border with the US - but it says that 80% of all traffickers picked up are US citizens. Likewise, Canada has appointed a fentanyl czar, but it reckons the drug is also flowing back over the border from the US. 

What about China?
China says it’s cooperated with the US in the past to crack down on fentanyl by running joint ops and adding the drug to its controlled substances list, but ultimately it says it’s “America’s problem”.

So, will the tariffs make a difference?
Only time will tell - but one thing they have shaken up are world markets.

What’s happened there?
Last week the world’s stock markets spun out when Trump said Americans could be in for some financial pain during “a period of transition” while the tariffs settled. But despite those market wobbles, Trump isn’t flinching…

He’s not rattled?
Nope… Economists say he’s taking a much more “transactional approach” to any trade deals he makes with other countries - including us - and that there needs to be something in it for America other than charity and old ties. When it comes to fentanyl, he’s openly said that either he gets the cooperation of Mexico, Canada and China to stop it, or the US government will keep taxing their exports to help fund the fight against it.

And while that happens…
The rest of the world - particularly investors - are strapping in for what could be a tumultuous ride.

Onto our Recommendations

Listening: Our Shortcut to Donald Trump’s tariffs will get you across what Trump is trying to achieve with tariffs and his ‘America first’ policy

Reading: This long read from the BBC follows the path of fentanyl from Mexico into the US via cartel smugglers

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