A new analysis has found that Mexican cartel activity in Canada has intensified over the past two decades, with fentanyl, methamphetamine, cocaine, and illegal tobacco forming the core of a $2.672 billion illicit market increasingly shifting online. The findings — compiled by David Clement of the Consumer Choice Center — come amid heightened scrutiny from the United States and new Canadian designations listing five Mexican cartels as terrorist organizations.Though senior Trump Administration official Peter Navarro recently claimed “Canada has been taken over by Mexican cartels” — a statement widely dismissed as exaggerated — the report concludes that cartel-linked criminal networks have taken root in Canada and are adapting to modern methods of trafficking and money laundering. Citing a 2024 RCMP raid that dismantled a cartel-style meth superlab in British Columbia, the report points to a troubling evolution in domestic drug production.Mexican cartels, particularly Sinaloa and CJNG, have extended their influence across the country, partnering with Canadian gangs and leveraging ports, migrant labor, and digital platforms to fuel operations. Canada’s 2025 move to designate seven transnational criminal groups — five of them Mexican — as terrorist organizations marked a turning point in acknowledging the scope of the threat.The illegal trade in fentanyl, street drugs, and contraband tobacco forms the backbone of this criminal economy. Fentanyl, in particular, is increasingly produced inside Canada, with high-capacity labs capable of flooding markets domestically and abroad. Cocaine and methamphetamine consumption remains high, particularly among youth in urban and western regions. Illicit tobacco, meanwhile, is estimated to make up 40% of cigarette consumption in Ontario and Quebec, largely sourced from production on reserves and trafficked by organized crime groups.Online marketplaces have become a new frontier for cartel-related sales, mimicking legitimate e-commerce platforms and offering drugs and illegal tobacco for delivery via Canada Post or private couriers. Payments are accepted through e-transfer, credit cards, and even Bitcoin. websites such as Cosmiq, MoonHaus, and Buy Psychedelics Canada openly list drugs for sale, often claiming lab-tested quality and fast shipping. Public Safety Canada has flagged the dark web, social media, and encrypted messaging apps as key distribution channels used by organized crime to avoid detection.The implications for Canadian institutions are serious. Under anti-terror laws, banks, payment processors, and Canada Post could face prosecution for facilitating transactions that support terrorist-listed organizations. Legal experts warn that provisions under the Criminal Code — including participation, facilitation, and handling terrorist property — could be applied to any party knowingly involved.Former federal minister Jason Kenney echoed the report’s call for stronger enforcement: “Yes, we must do more to combat the biker gangs, Chinese triads, Mexican cartels, smuggling and illegal networks… But to claim that ‘Canada has been taken over by Mexican cartels’ is obviously and utterly ridiculous.”Still, the report concludes that the Liberal Government must act urgently to address the growing presence of cartel-linked networks, both to restore public safety and to preserve Canada’s relationship with the United States. Failure to act, it warns, could risk severe legal and reputational consequences for institutions caught in the crosshairs of organized crime.
