Enforcement of cross-border cargo regulations has significantly increased during the Trump administration, causing delays and financial burdens for shippers, according to industry experts. With the implementation of tariffs and stricter customs procedures in the protectionist United States, freight screening and penalties have surged.
Breanna Leininger, who manages U.S. operations at Pacific Customs Brokers in Vancouver, described the substantial changes in border officials’ demands for documentation on shipped goods. The volume of entries subject to thorough customs scrutiny has risen dramatically over the past few years, with a noticeable increase in the level of paperwork required to demonstrate compliance with product classifications and trade agreements.
Customs audits this year are projected to rise by 26% compared to the previous year, indicating a more rigorous approach to ensuring adherence to tariff classifications and trade agreements. The amount collected in trade penalties by U.S. customs authorities has seen a significant increase, with a 169% surge in the first half of this year compared to the whole of 2024.
As tensions escalate in the trade war between Canada and the U.S., additional delays and costs incurred due to heightened enforcement measures are impacting cross-border commerce. The complexities and expenses associated with meeting the evolving customs requirements are leading some businesses to find the process overly challenging and costly.
While some companies have managed to navigate the increased enforcement measures, others have found it too burdensome to continue. U.S. Customs and Border Protection stated that they continuously evaluate their trade enforcement strategies based on risk and trade trends, emphasizing the responsibility of importers to provide accurate and complete information to facilitate smoother customs processes.