Enforcement of cross-border cargo regulations has significantly increased during the current administration, leading to delays and additional costs, according to industry experts. With a growing tariff barrier at the U.S.-Canada border, there has been a noticeable rise in freight inspections and fines, reflecting a stricter customs approach in the United States.
Breanna Leininger, overseeing U.S. operations at Pacific Customs Brokers in Vancouver, noted a substantial shift in customs requirements. The demand for documentation on shipped goods has multiplied tenfold compared to previous years, with a notable increase in the frequency of detailed customs examinations.
To ensure compliance with trade agreements and product classifications, importers are now required to provide more extensive paperwork, including labor and manufacturing records. The level of documentation requested and the specific tariffed items appear to be constantly evolving, making it challenging for businesses to keep up.
Data from U.S. Customs and Border Protection reveals a significant uptick in audits this year, indicating a 26% increase over the previous year. Notably, the agency collected $70.6 million in trade penalties in the first half of the year, marking a 169% surge compared to the entirety of 2024 and a 53% increase from 2025.
The heightened enforcement measures coincide with an escalating trade dispute between Canada and the U.S., resulting in the imposition of additional tariffs by both countries. These border checks and prolonged document verification processes contribute to increased expenses and can deter cross-border trade activities.
Alan Dewar, Executive Vice President at GHY, a customs brokerage in Winnipeg, highlighted the substantial costs incurred due to delays and compliance challenges in the current trade environment. He emphasized that logistical delays, storage costs, and service charges further impact businesses involved in cross-border trade.
Despite efforts by many businesses to navigate the evolving regulations, some find the process too complex and opt out of cross-border trade activities. U.S. Customs and Border Protection emphasized the importance of importers providing accurate information and exercising due diligence to comply with trade regulations.
Overall, the stricter enforcement measures and evolving trade landscape underscore the complexities and challenges faced by businesses engaged in cross-border commerce.