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Changes to Canadian tariffs could shift cross-border freight demand

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Changes to Canadian tariffs could shift cross-border freight demand
Changes to U.S. tariffs on Canadian goods took effect Oct. 30, removing an additional 50% duty on some products while imposing it on others. The changes could affect shipping costs and freight demand for trucking companies transporting goods across the US-Canada border.

WASHINGTON — Changes to U.S. tariffs on a wide range of Canadian goods took effect Friday, Oct. 30, potentially affecting the cost of commodities transported across the U.S.-Canada border by commercial trucks.

Under a presidential proclamation published in the Federal Register Oct. 30, President Donald Trump has removed an additional 50% tariff from certain Canadian products while applying the same duty to other categories of imported goods.

The affected products include building materials, packaging supplies, industrial equipment, lubricants, paper products and flooring — commodities commonly transported by commercial trucks.

While the proclamation does not directly change trucking regulations or border-crossing requirements for drivers, the tariff adjustments could influence shipping costs and demand for certain types of cross-border freight.

Changes to tariffs on Canadian products

The proclamation modifies tariffs originally imposed in July 2026 in response to what the administration described as discriminatory Canadian trade policies affecting U.S. motor vehicles and automotive parts. Those additional duties took effect in August and were then modified in September.

The latest action further changes the list of Canadian products subject to the additional 50% tariff.

Among the products no longer subject to the additional duty are certain types of plywood, plastic packaging materials, paperboard, cartons, bags and refrigeration equipment. The exemptions also include specified industrial machinery used for packaging, processing and agricultural production.

At the same time, the administration has added new products to the tariff list, including certain lubricating preparations, wood products, flooring materials, paper products, paints and other manufactured goods.

According to U.S. Customs and Border Protection (CBP), the changes remove 22 product classifications from the additional tariff while adding 100 others.

The new tariffs apply to affected Canadian products imported into the U.S. beginning at 12:01 a.m. Eastern time Oct. 30, including goods released from customs warehouses on or after that date.

Potential impact on cross-border trucking

The tariff changes could have implications for trucking companies hauling goods between the U.S. and Canada, particularly carriers serving construction, manufacturing, agricultural and industrial customers.

For example, removing the additional tariff from certain plywood and packaging products could reduce import costs for affected shipments, potentially supporting demand from U.S. buyers.

Conversely, imposing the additional duty on other building materials, flooring products and manufactured goods could increase costs for importers and influence purchasing or shipping decisions.

Changes in import demand can affect freight volumes, equipment utilization and the types of commodities moving across the border.

However, the proclamation does not provide estimates of how the revisions might affect freight volumes, truck traffic or transportation rates. The actual impact will depend on factors including the value of affected imports, customer demand and how businesses respond to the revised tariffs.

Additional duties remain in place

The proclamation does not eliminate the broader tariff measures affecting Canadian products. Instead, it adjusts the list of goods subject to the additional 50% duty under Section 338 of the Tariff Act of 1930.

According to a White House fact sheet, the Section 338 tariffs apply to covered products regardless of their status under the United States-Mexico-Canada Agreement (USMCA). The additional tariffs also apply on top of applicable duties imposed under Section 232 of the Trade Expansion Act of 1962.

CBP has issued updated instructions for importers, customs brokers and other parties responsible for filing import documentation, including revised tariff classifications.

For carriers and logistics providers involved in cross-border freight movement, the changes underscore the importance of monitoring trade policies that can influence customers’ shipping costs and purchasing decisions.

Although the immediate financial impact falls on importers of affected products, changes in the flow of goods between the two countries could eventually translate into shifts in demand for cross-border trucking services.

 

linda gardner bunch

Linda Garner-Bunch has been with The Trucker since 2020, picking up the reins as managing editor in 2022. Linda has nearly 40 years of experience in the publishing industry, covering topics from the trucking and automotive industry to employment, real estate, home decor, crafts, cooking, weddings, high school sports — you name it, she’s written about it. She is also an experienced photographer, designer and copy editor who has a heartfelt love for the trucking industry, from the driver’s seat to the C-suite.

Avatar for Linda Garner-Bunch
Linda Garner-Bunch has been with The Trucker since 2020, picking up the reins as managing editor in 2022. Linda has nearly 40 years of experience in the publishing industry, covering topics from the trucking and automotive industry to employment, real estate, home decor, crafts, cooking, weddings, high school sports — you name it, she’s written about it. She is also an experienced photographer, designer and copy editor who has a heartfelt love for the trucking industry, from the driver’s seat to the C-suite.
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