Enforcement of cross-border cargo regulations has significantly increased during the Trump administration, causing delays and financial burdens that are deterring trade, according to industry experts. As the U.S. implements tariffs along the 49th parallel, customs procedures have become stricter, leading to heightened scrutiny and penalties for shippers.
Breanna Leininger, overseeing U.S. operations at Pacific Customs Brokers in Vancouver, noted a substantial shift in the demands for documentation on shipped goods. The frequency of customs inspections requiring detailed paperwork, including labor and manufacturing records, has surged, with the level of evidence needed and the targeted items changing frequently.
Data from U.S. Customs and Border Protection reveals a 26% projected increase in audits this year compared to 2024. The assessments focus on importer compliance with tariff classifications, customs valuations, and trade agreements like the Canada-United States-Mexico Agreement. The agency collected $70.6 million in trade penalties in the first half of this year, a significant rise from previous years.
The escalating enforcement measures coincide with a trade dispute between Canada and the U.S., resulting in additional tariffs imposed by both nations. These border disruptions and extended requirements for documentation contribute to rising costs and hinder cross-border trade, as highlighted by Alan Dewar of GHY, a customs brokerage based in Winnipeg.
Leininger emphasized that while some businesses have managed to navigate the heightened regulations, others have found the process too burdensome to continue. U.S. Customs and Border Protection stated that they adjust enforcement strategies based on risk and trade patterns, emphasizing importers’ responsibility to provide accurate information for compliance.