Enforcement of cross-border cargo regulations has significantly increased during the Trump administration, causing delays and financial burdens that are discouraging trade, according to industry experts. As the U.S. imposes more tariffs at the northern border, transportation professionals note a rise in freight inspections and penalties, signaling a stricter customs approach in a more protectionist America.
Breanna Leininger, overseeing U.S. operations at Pacific Customs Brokers in Vancouver, described the shift as substantial. The volume of documentation requested by border officials for shipped goods has surged tenfold compared to previous years. Leininger, managing 5,000 customers engaged in cross-border trade, observed a significant uptick in customs scrutinizing shipments, from occasional instances in the past to several occurrences daily.
To demonstrate compliance with product classifications and trade agreements, importers are now required to furnish extensive paperwork such as labor and manufacturing records, with the level of evidence and the targeted goods subject to frequent alterations. Leininger highlighted the evolving demands, stating that the information sought by customs is continuously changing.
Quantitative data corroborates the narrative on heightened enforcement. U.S. Customs and Border Protection data reveals a projected 26% increase in audits in comparison to the previous year. Notably, in the first half of the current year, customs authorities collected $70.6 million US in trade penalties by late July, marking a substantial 169% surge from the total penalties imposed in 2024.
This intensified enforcement coincides with a growing trade dispute between Canada and the U.S., characterized by reciprocal tariff escalations in recent weeks. The resulting border delays and increased administrative requirements translate to higher costs and can deter cross-border transactions. Alan Dewar, the executive vice-president of GHY, a Winnipeg-based customs brokerage, emphasized the significant financial impact, highlighting the added expenses incurred due to delays and compliance challenges.
While many businesses have managed to navigate the evolving trade landscape, some have found the regulatory environment too daunting to continue. U.S. Customs and Border Protection emphasized that importers are expected to exercise due diligence and provide accurate information to facilitate trade compliance.
