On March 4, 2025, the Trump administration imposed tariffs on imports from Canada and Mexico, significantly impacting the logistics industry. Effective as of 12:01 a.m. Eastern Standard Time, a 25% ad valorem duty now applies to nearly all goods from these key trading partners, with Canadian energy products—such as oil, natural gas, and electricity—facing a reduced 10% rate. This exception acknowledges their critical role in U.S. energy supply chains, particularly in the Midwest and Mountain West.
The breadth of affected products is extensive, given the $680 billion in annual U.S. imports from Canada and Mexico. Canada supplies $40 billion in agricultural goods (e.g., beef, grains, canola oil) and substantial volumes of lumber and manufactured items. Mexico, the top U.S. import partner, provides $45 billion in agriculture (e.g., tomatoes, avocados, beer) and key industrial inputs like auto parts and electronics. The tariffs also eliminate the Section 321 de minimis exemption for shipments under $800, disrupting e-commerce logistics.
For the logistics sector, this translates to higher costs and operational complexity. Cross-border trucking, rail, and warehousing operators face increased tariffs on goods moved, potentially raising freight rates. Supply chain delays are anticipated as companies adjust to new documentation and compliance requirements. Industries reliant on just-in-time delivery, such as automotive manufacturing, may see bottlenecks, while retailers could struggle with inventory management as costs climb.
Negotiations in February delayed the tariffs by a month, but enforcement proceeded as planned. The logistics industry now braces for a reshaped North American trade landscape, with efficiency and cost control at the forefront of adaptation strategies.
