Understanding the Latest U.S. Trade Policies: What Canadian Businesses Need to Know    

The Trump administration has introduced sweeping trade policy changes that could significantly impact Canadian businesses. As new tariffs and regulatory shifts take effect, business leaders must prepare for rising costs, supply chain disruptions, and increased compliance requirements when trading with the U.S. 

Recent trade policy announcements 

1. Potential tariff increases and policy revisions 

The U.S. government has proposed several key changes to trade regulations, including: 

• A 25% tariff on imports from Canada and Mexico, effective as of March 4th, with a temporary pause on tariffs for goods covered by the United States-Mexico-Canada Agreement (USMCA) announced on March 6^th. 

• A 20% tariff on Chinese imports effective March 4th, up from 10%. 

• The introduction of reciprocal tariffs on April 2nd, matching duties imposed on U.S. exports by other nations. 

• A proposed 25% tariff on European Union imports, creating further uncertainty for businesses with EU trade ties. 

• Potential port fees for Chinese-built ships and shipping companies operating in U.S. waters. 

2. Section 321 update: No immediate changes, but continued monitoring 

A key concern for Canadian eCommerce businesses is the impact of Section 321 reforms, which regulate duty-free imports under $800 per customer, per day. 

A new Executive Order issued on March 2, 2025, revises trade rules but does not yet eliminate de minimis duty-free treatment. This means business will continue as usual for now. However, businesses should prepare for potential future compliance changes, which may include: 

• Stricter documentation requirements for duty-free imports. 

• Enhanced customs enforcement leading to increased lead times. Additionally, some customers may be required to sign a Power of Attorney (POA) for customs clearance. 

• Potential new restrictions on goods from certain regions, particularly China. 

Trump tariffs: Immediate impact on Canadian businesses 

The March 4th tariff hike on Canadian imports will affect multiple industries, with manufacturing, energy, and automotive sectors among the hardest hit. Most Canadian imports face a 25% tariff, except for Canadian energy products like oil and electricity, which will be taxed at a lower 10%. 

For now, as announced on March 6th, there is a temporary pause on tariffs for USMCA-compliant goods. But for approximately 62% of imports from Canada, the 25% tariff will likely still apply due to non-compliance with USMCA regulations. These tariffs could drive up costs for manufacturers, disrupt cross-border supply chains, and make Canadian exports less competitive in the U.S. market. However, there is currently no impact on shipments valued under $800. 

New Compliance Requirements for U.S.-Bound Shipments 
With increased customs enforcement, Canadian businesses shipping to the U.S. must meet stricter compliance regulations to prevent delays and ensure seamless deliveries. Key requirements include: 

• Country of Origin & HS Code Declarations: All U.S.-bound shipments must include country of origin details. For products originating from China or Hong Kong, HS codes must also be provided. 

• Mandatory Country of Origin Labeling: Each package must have a visible country of origin sticker to meet U.S. Customs enforcement standards. 

• Accurate Documentation: To avoid potential shipment holds, all customs invoices should include: 

• Product description 

• Country of origin 

• HS code 

• SKU 

• Declared value & quantity 

Navigating the Road Ahead  

While these policy changes present challenges, they also encourage businesses to rethink their trade strategies. Canadian businesses can mitigate risks by optimizing supply chains, exploring new trade partners, and staying proactive in compliance.  

By working with eShipper, companies can access efficient logistics solutions that help them adapt to shifting regulations.  

Stay Updated with eShipper 

Despite these regulatory changes, eShipper is processing shipments normally, and our services remain unaffected. Our team is actively monitoring policy updates and working to ensure smooth cross-border shipping for our customers.  

As these trade policies continue to evolve, we’ll keep this blog updated with the latest developments and actionable insights. Stay tuned for expert analysis and strategies to help your business stay ahead in the changing trade landscape. 

Want to dive deeper into how these tariff changes impact your business? Join our exclusive webinar, Mitigating Tariff Impact: How Businessess Can Stay Agile and Competitive, on March 13th at 1 PM EDT.