How Canadian Trucking Companies Are Managing U.S. Tariffs

by | May 28, 2025 | Uncategorized

 

Canadian trucking companies have adopted a range of strategies to manage the impact of U.S. tariffs on cross-border trade. Many of these approaches are enabled or enhanced through the use of transportation management software (TMS software) and other tools.

1. Leveraging Transportation Management Software Functions

  • Route Optimization: Canadian carriers use TMS software to plan the most cost-effective and tariff-conscious routes, minimizing delays and fuel costs.
  • Real-Time Visibility: Advanced systems provides real-time tracking and customs documentation management, reducing exposure to border disruptions.
  • Tariff Calculation: Some transportation management software platforms integrate tariff simulation features, allowing carriers and shippers to forecast and plan around cost changes.

2. Cost Management and Transparency

  • Automated Surcharges: Using trucking software, companies can automate tariff-related surcharges and apply them directly to invoices.
  • Data-Driven Decision-Making: TMS analytics help evaluate the impact of tariffs on profit margins, helping businesses determine when to absorb costs or pass them on to customers.

3. Customs Compliance and Efficiency

  • Broker Integration: Modern TMS software often integrates with customs brokerage services to streamline compliance with tariff regulations.
  • USMCA Rule Tracking: Keeping up with the latest tariff classifications and rules of origin under the USMCA is easier with automated compliance tools.

4. Adaptive Supply Chain Strategies

  • Dynamic Routing: Tariff fluctuations can shift the optimal trade lanes. Transportation management software enables dynamic adjustments based on real-time cost models.
  • Inventory Prepositioning: With TMS planning tools, carriers help clients pre-position goods in warehouses on either side of the border to mitigate tariff timing risks.

5. Collaboration and Integration

  • Carrier-Shipper Collaboration: Integrated TMS software platforms facilitate better coordination between Canadian carriers and U.S. shippers, reducing friction in tariff-impacted logistics.
  • Multi-modal Planning: Some tools offer pre-planning to shift freight to rail or maritime when tariffs make trucking less cost-effective.

6. Government and Trade Programs

  • Automation of Compliance for C-TPAT and FAST: Enrollment and adherence to these programs is often managed via transportation management software, speeding up customs clearance processes.

7. Scenario Planning and Risk Mitigation

  • What-If Analysis: Many TMS software solutions offer predictive modeling to assess how tariff changes will impact profitability, service levels, and customer satisfaction.

Conclusion

By integrating advanced trucking software, Canadian trucking companies are not only responding to the challenges of U.S. tariffs—they’re turning them into opportunities for greater efficiency, visibility, and customer service. These digital tools are becoming essential for staying competitive in an increasingly complex cross-border trade environment.