Canada–US Tariff Update: What Freight Shippers Need to Know (Sept 2025)

Trade between Canada and the U.S. just got more complicated. With fresh tariffs rolling out south of the border and Canada adjusting its own response, cross-border freight shippers need to keep a close eye on what’s next. Here’s the quick breakdown.

🚛 U.S. Tariffs: October 1 Shockwave

• 25% tariff on heavy trucks — a direct hit to fleets and OEM supply chains.

• 50% tariff on cabinets/vanities and 30% on furniture — squeezing consumer goods imports.

• 100% tariff on branded pharmaceuticals unless U.S. production is underway.

👉 Translation for freight: higher truck costs, tighter margins, and more shippers scrambling for USMCA exemptions or alternate supply routes.

🍁 Canada’s Position

• As of Sept 1, 2025, Canada rolled back many counter-tariffs except on steel, aluminum, and autos.

• Carney government pledge: Canada will mirror U.S. exemptions under USMCA to avoid double penalties.

• New One Canadian Economy Act aims to cut red tape within Canada and smooth domestic logistics.

👉 Translation for freight: less whiplash on retaliatory tariffs, but auto and steel remain friction points.

📉 The Economic Pulse

Canada

• GDP rebounded +0.2% in July after three months of contraction.

• Still fragile: Q2 showed a –1.6% annualized dip.

• Bank of Canada rate now at 2.5%, with more cuts possible.

United States

• Economy still resilient, but inflation risks are rising.

• New tariffs could push costs higher into 2026.

• Auto tariffs on EU imports were trimmed (25% → 15%), showing selective flexibility.

👉 Bottom line: Both economies are in “slow grind” mode, with tariffs acting as extra drag.

📦 What This Means for Shippers

• Don’t lock in blind contracts — make sure tariff escape clauses are in place.

• Audit USMCA compliance — exemptions and cost savings live here.

• Expect reroutes — more freight may pivot through Mexico or alternate ports.

• Build buffers — higher duties and compliance costs will squeeze margins.

• Diversify trade lanes — don’t bet the house on one corridor.

⚡ Quick Take

Cross-border freight is entering a higher-cost, higher-risk cycle. Shippers who stay agile — tracking tariffs, adjusting sourcing, and leveraging USMCA exemptions — will weather it best. Everyone else risks paying the price (literally).