Enforcement of cross-border cargo regulations has significantly increased during the Trump administration, leading to delays and additional costs for shippers. According to industry experts, there has been a surge in freight inspections and penalties as part of a more protectionist customs approach in the United States.
Breanna Leininger, who oversees U.S. operations at Pacific Customs Brokers in Vancouver, described the shift as massive. She noted a tenfold rise in border officials’ requests for documentation on shipped goods compared to previous years. The scrutiny from customs has intensified, with a noticeable increase in the depth of inspections on a daily basis.
Importers are now required to provide more extensive documentation, including labor and manufacturing records, to demonstrate compliance with product classifications and trade agreements. This evolving landscape poses challenges as the information requested and level of evidence needed seem to change frequently.
U.S. Customs and Border Protection data confirms the trend of stricter enforcement measures. Audits of importers’ records to verify compliance with tariff classifications and trade agreements are projected to increase by 26% this year compared to 2024. The agency collected $70.6 million US in trade penalties in the first half of this year alone, marking a significant jump from previous years.
The heightened enforcement coincides with an escalating trade dispute between Canada and the United States, leading to additional tariffs being imposed by both countries. These border delays and increased regulatory requirements contribute to higher costs and can dampen cross-border trade activities.
Alan Dewar, executive vice-president at GHY, a customs brokerage in Winnipeg, emphasized the financial burden imposed by these trade disruptions. Delays in transportation can result in significant expenses, spoilage, and service charges, impacting the overall supply chain efficiency.
Despite efforts to navigate the evolving customs landscape, many businesses find the challenges overwhelming, leading some to consider discontinuing cross-border operations. The U.S. Customs and Border Protection emphasized the importance of importers providing accurate information and complying with trade regulations to facilitate smooth border crossings.
Overall, the trade environment remains dynamic and challenging for shippers and importers, with ongoing adjustments in enforcement measures to manage risks and ensure compliance with trade laws.
