Enforcement of cross-border cargo regulations has significantly increased during the Trump administration, leading to delays and additional costs, according to industry experts. As the U.S. implements higher tariffs, the scrutiny on freight screening and penalties has intensified, reflecting a more protectionist stance by U.S. customs authorities.
Breanna Leininger, overseeing U.S. operations at Pacific Customs Brokers in Vancouver, noted a significant shift in the demands for documentation on shipped goods. The frequency of customs inspections requiring detailed paperwork, such as labor and manufacturing records, has risen tenfold compared to previous years, affecting around 5,000 customers engaged in cross-border trade.
Importers now face a higher burden of proof to comply with product classifications and trade agreements, with evolving requirements that seem to change regularly. U.S. Customs and Border Protection data supports these observations, showing a projected 26% increase in audits in the current year compared to 2024.
The enforcement escalation coincides with a trade dispute between Canada and the U.S., resulting in reciprocal tariff increases. These border disruptions, coupled with the heightened document verification processes, have led to increased costs and operational challenges for businesses involved in cross-border trade.
Alan Dewar, the executive vice-president at GHY, a Winnipeg-based customs brokerage, highlighted the financial impact of these regulatory changes, emphasizing the added expenses and complexities faced by shipping companies. The prolonged processing times and potential delays have amplified operational costs, posing challenges for both large and small businesses navigating the evolving regulatory landscape.
Despite efforts to adapt, some businesses find the regulatory environment overly burdensome, leading to potential disruptions in cross-border commerce. U.S. Customs and Border Protection emphasized the importance of importers providing accurate information to facilitate compliance with trade regulations, reflecting the agency’s ongoing focus on risk assessment and enforcement measures.