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.
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.
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.
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.
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.
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.
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).