Cross-border trade and tariffs between Canada and the United States have become a significant issue in recent times. These tariffs and duties can eat into a major portion of your profits while shipping from Canada to the USA.
Whether you are a manufacturer or a distributor handling freight shipping in Canada, understanding these concepts is essential. There are hidden costs at the border that can slow your operations and eat into margins.
This blog explains how tariffs and duties affect your logistics strategy. We will also understand how shipping companies in Canada can help with compliance, cost savings, and seamless freight movement.
What Are Tariffs, Duties, and Taxes All About?
Understanding the cost of moving goods across the border is crucial for making an informed decision about these matters. Some of the most common of these charges include:
- Tariffs: These are government-imposed taxes on specific imports.
- Duties: These charges vary depending on the value or volume of goods.
- Excise Taxes: Depending on the product type, authorities might even charge excise taxes on cross-border shipping companies.
These charges are very important and not something anyone can or should avoid. These things directly affect product pricing, delivery timelines, and overall competitiveness.
Also Read:
Top Risks in International Shipping And How to Minimize Them
The Role of Cross-Border Shipping in Business Risk Management
Why Cross-Border Shipping is a Game Changer for Retailers?
Smart Strategies to Reduce Costs
Don’t let duties disrupt your shipping process. Instead, you can take a more balanced approach and apply these strategies for better savings:
- Product Classification: Classify products accurately to ensure proper application of the correct tariff codes.
- Leverage Free Trade Agreements: It is no secret that leveraging free trade agreements, such as the USMCA, can help eliminate or reduce duties.
- Strategic Shipments: Split shipments strategically to stay under value thresholds and minimize costs.
Working with a 3PL that understands freight shipping from Canada to the USA is your best shot here. This means you’re not guessing at paperwork—you’re using data to guide decisions.
Duty Drawback: Get Money Back
One of the lesser-known benefits of shipping from Canada to the United States is the duty drawback program. This allows companies to claim refunds on duties paid for goods that are:
- Re-exported
- Damaged or defective
- Returned by the buyer
Final Thoughts
The real cost of tariffs and duties isn’t just money—it’s also time, confusion, and missed opportunities. When you’re shipping from Canada to the USA, you need a strategy, not just a service. NATS Canada helps you navigate regulations, minimize surprises, and deliver with confidence.
Let NATS Canada streamline your shipments, cut through red tape, and get your goods across the border efficiently and affordably.