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Newly Enacted Tariffs: Avoiding Supply Chain Disruption 

Author Troy Ryley

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New tariffs imposed by the country’s administration have begun, and it’s more important than ever to understand and prepare for how the impact of such action will affect shipping from Mexico and Canada. The result of these tariffs will be particularly impactful to shippers, and planning will be critical to minimize how the tariffs affect business. Fortunately, our Echo experts have extensive experience and knowledge of the industry to understand how to handle such situations and can provide guidance in a few different areas so you can be as prepared as possible.  

As tariffs take effect, we can expect a post-tariff slowdown while companies reconfigure their supply chains. Industries that depend on cross-border trade, such as automotive, electronics, and consumer goods, may scale back or delay shipments due to increased costs. Additional long-term adjustments may also have to be made, meaning businesses may reassess sourcing strategies or explore alternative logistics solutions to manage higher tariff costs.   

Tariffs also affect demand, which in turn can impact capacity and freight rates. Lower cross-border volumes could lead to shifts in trucking capacity, potentially affecting freight rates in the long run. As companies face pressure from inflation, higher import costs may impact consumer prices, which could influence broader demand for freight services. As trade uncertainty culminates, reports indicate that Mexico, Canada, and China may implement countermeasures, which could add further complexity to cross-border shipping. Given the dynamic nature of trade policy, businesses should stay informed about possible changes that could affect supply chains. 

Given the fluidity of the situation, having a plan in place for navigating tariffs on cross-border freight is imperative. Echo’s expansion of its cross-border services has positioned us to be uniquely equipped to help shippers navigate the risks of tariffs and complete assessments of impact. Developing strategies for how to mitigate risks can go a long way toward keeping disruptions to a minimum.  

For instance, under a universal tariff, diversifying supply chains can help shippers take back control and avoid additional disruptions. Sourcing from new suppliers in countries with more ideal trade agreements is a valid option, while negotiations take place to end said universal tariff, which we can readily expect should such a policy be enacted. 

Here are some actions shippers can take:  

  • Monitor developments – Stay updated on tariff-related announcements from U.S. Customs and Border Protection (CBP) and industry sources. 
  • Engage with logistics partners – Work closely with carriers and trusted third-party logistics (3PL) providers to navigate potential delays and cost changes. 
  • Adjust supply chain strategies – Consider alternative shipping routes, modes, or sourcing strategies to mitigate impacts.   
  • Plan for long-term adjustments – If tariffs remain in effect, businesses may need to explore nearshoring, supplier diversification, or operational adjustments. 

To avoid higher cross-border freight rates in general, shippers can utilize specific solutions, such as customs bonded services or transload shipments at the border. That’s where Echo comes in. From extensive cross-border transportation solutions to a wealth of expertise in shipping both into and out of Mexico and Canada, our team has you covered with a variety of options and can readily prepare for contingency strategies as necessary. Regardless of what results from the current tariff policy discussions, Echo will continue to serve you with the same high-quality technology and expertise you can count on.  

For informational purposes.