Enforcement of cross-border cargo regulations has significantly intensified during the current administration, leading to increased costs and delays that are discouraging trade, according to industry experts. As a protective barrier emerges along the northern border, transportation insiders note a rise in freight inspections and penalties, reflecting a more stringent customs approach in the United States.
Breanna Leininger, overseeing U.S. operations at Pacific Customs Brokers in Vancouver, emphasized the substantial shift in requirements. The volume of documentation demanded by border officials for shipped goods has increased tenfold compared to previous years, with a noticeable escalation in the depth of customs scrutiny on product entries. Importers are now compelled to furnish extensive paperwork, including labor and manufacturing records, to validate compliance with product classifications and trade agreements, facing shifting demands and heightened verification standards.
Data from U.S. Customs and Border Protection indicate a surge in audits this year, expected to grow by 26% from 2024 levels. The authority collected $70.6 million US in trade penalties within the first half of this year alone, marking a 169% increase from 2024 and a 53% rise from 2025 totals.
This stricter enforcement coincides with an escalating trade conflict between Canada and the U.S., characterized by successive tariff impositions. The resulting border congestion and extended processing times for document verification contribute to increased costs and operational challenges for businesses engaged in cross-border trade, potentially hindering commerce activities.
Alan Dewar, the executive vice president at GHY, a customs brokerage in Winnipeg, highlighted the significant financial burdens imposed by these regulatory changes on businesses. He emphasized the additional costs incurred due to delays in border crossings, potential product spoilage, and service charges resulting from disruptions in supply chain logistics.
Despite efforts by many businesses to adapt to these evolving regulations, Leininger acknowledged that some find the compliance requirements overwhelming, leading them to disengage from cross-border trade activities. U.S. Customs and Border Protection defended their enforcement actions, stating that they adjust their approach based on risk assessments, trade patterns, and legal obligations, emphasizing importers’ responsibility to provide accurate information for customs clearance.