Enforcement of cross-border cargo regulations has significantly increased during the Trump administration, resulting in higher costs and delays that deter trade, according to industry experts. With a tariff barrier expanding along the U.S.-Canada border, there has been a surge in freight inspections and penalties, reflecting a more protectionist stance by the United States.
Breanna Leininger, managing U.S. operations at Pacific Customs Brokers in Vancouver, described the shift as substantial. She noted a tenfold rise in border officials’ requests for documentation on shipped goods compared to previous years. The scrutiny by customs authorities has become more rigorous, with a significant increase in examinations daily.
Importers are now required to provide extensive paperwork, including labor and manufacturing records, to demonstrate compliance with product classifications and trade agreements. The level of evidence requested and the items subject to tariffs appear to be evolving frequently, creating challenges for businesses.
Data from U.S. Customs and Border Protection reveals a 26% projected increase in audits in the current year compared to 2024. The agency collected $70.6 million in trade penalties in the first half of this year, marking a substantial rise from previous years.
The heightened enforcement measures coincide with a trade dispute between Canada and the U.S., leading to additional tariffs imposed by both countries. These border delays and increased administrative burdens contribute to higher costs and can discourage cross-border trade.
Alan Dewar, executive vice-president at GHY, a customs brokerage in Winnipeg, highlighted the financial impact of these enforcement actions, emphasizing the added expenses and logistical challenges faced by businesses. Some companies find the compliance requirements overwhelming and may opt out of cross-border trade due to the complexities involved.
U.S. Customs and Border Protection emphasized that importers are responsible for providing accurate information and complying with regulations. The agency stated that its trade enforcement strategies are continuously evaluated based on risk factors, trade patterns, and legal obligations.