Enforcement of cross-border cargo regulations has significantly increased during the current administration, causing delays and financial burdens that deter trade, according to industry experts. Along the U.S.-Canada border, there has been a noticeable rise in freight inspections and penalties, reflecting a stricter customs approach in the protectionist climate of the United States.
Breanna Leininger, overseeing U.S. operations at Pacific Customs Brokers in Vancouver, described the substantial changes in customs requirements. The demand for documentation on shipped goods has multiplied tenfold compared to previous years, with customs now scrutinizing a higher volume of entries daily, a stark contrast from the past.
Importers are now under pressure to provide extensive paperwork demonstrating compliance with product classifications and trade agreements. The level of verification requested, along with the specific tariffed items, appears to be in constant flux, creating challenges for businesses navigating the evolving landscape of customs regulations.
Data from U.S. Customs and Border Protection reveals a significant uptick in audits, projected to increase by 26% compared to the previous year. The agency collected $70.6 million US in trade penalties within the first half of the current year, marking a substantial 169% surge from the entire year of 2024 and a 53% rise from 2025.
This heightened enforcement coincides with an escalating trade dispute between Canada and the U.S., leading to additional tariffs imposed by both sides in recent weeks. The resulting border delays and increased administrative burdens are driving up costs and dissuading cross-border trade, as highlighted by industry insiders.
Alan Dewar, from GHY Customs Brokerage in Winnipeg, emphasized the significant financial implications of these developments on businesses. The extended wait times and added expenses incurred due to compliance issues are contributing to a challenging environment for cross-border commerce.
Despite efforts by businesses to adapt, some are finding the regulatory landscape overwhelming, leading to potential disengagement from cross-border activities. U.S. Customs and Border Protection affirmed their commitment to adjusting enforcement practices based on risk assessment and trade dynamics, emphasizing the importance of accurate information provision by importers to facilitate smoother customs processes.