Navigating the Changing Landscape of International Freight Forwarding
Updated: Oct 15
Our founder and CEO, Steffen Manz, spoke with The Loadstar this week about how the US-Canada trade war is changing the way Canadian companies source their goods. The article, published on September 23, reports that Canadian importers are starting to look to Europe for products they used to buy from the US. We want to share more of the context here, because many of our clients are asking the same questions. theloadstar
Recent Developments in Trade Relations
The US imposed a 50% tariff on $27.6 billion of Canadian goods starting August 22, 2026. In response, Ottawa matched those tariffs dollar for dollar. Since September 8, Canadian counter-tariffs of 15% to 50% have applied to more than 700 items. The targeted sectors include steel and aluminum, dairy, appliances, agricultural equipment, pulp and paper, plastics, and electronics. Complete list of U.S. products subject to counter tariffs - Canada.ca +2
The situation across the Atlantic is notably different. CETA, the Canada-EU free trade agreement, removed 99% of tariff lines when it provisionally took effect in 2017. Canada-EU merchandise trade hit $134 billion in 2025, more than 77% higher than in 2016, the year before CETA. The two sides are now discussing a broader partnership, and an EU-Canada summit is scheduled for October 29 and 30 in Canada. Carney welcomes EU invite for Canada to become first associate member +2
The UK opened a second route on September 1. That day, the CPTPP came into force between Canada and the United Kingdom. The CBSA introduced a new tariff treatment for UK-origin goods that meet CPTPP rules of origin. The existing Canada-UK Trade Continuity Agreement is still in force, allowing importers to choose the agreement that works best for a given shipment. Official agreement and side instruments +2
Observations from the Ground
As Steffen mentioned to The Loadstar, the push for change is strongest in industrial manufacturing, automotive components, and consumer packaged goods. These sectors often operate on thin margins. A 25% to 50% tariff can wipe out the profit on a product line. theloadstar
However, this shift is not a sudden flood of containers. Shippers are sending trial batches, a few TEU or LCL loads from the EU, to measure transit times and landed costs. This cautious approach makes sense. Changing suppliers requires vetting new vendors and matching technical specifications. It also means rethinking inventory. A shipment that used to take two days by truck across the border now takes 14 to 21 days by sea. This change affects carrying costs and warehouse space. theloadstar
Border operations have also become more complex. Customs brokers are navigating intricate paperwork on tariff exemptions. Some cross-border lanes have slowed as companies hold shipments while awaiting clarity. Our team now spends more time assisting clients with compliance and tariff planning, rather than just booking moves. theloadstar
We anticipate a shift in transportation modes. Steffen expects less cross-border trucking and more ocean freight arriving at Montreal, Saint John, and Halifax. Additionally, there will be an increase in transatlantic air freight for high-value, time-sensitive goods. theloadstar
Long-Term Implications of the Trade Shift
As Steffen articulated, "Supply chain managers hate volatility more than they hate high costs." He believes that even if Washington and Ottawa reached a deal tomorrow, many companies have learned that they relied too heavily on one trading partner. He expects the move toward European sourcing to accelerate through Q4 and into next year. theloadstar
Strategies for Sourcing from Europe or the UK
If you're considering sourcing from Europe or the UK, here are some strategies to consider:
Start Small. Consolidate a first order as an LCL shipment before committing to full containers. This approach allows you to assess real transit times and costs without taking on excessive risk.
Compare Landed Costs, Not Unit Prices. Evaluate ocean freight, insurance, duties, and brokerage for a European supplier against what the same product costs from the US, including tariffs.
Check Rules of Origin Early. CETA and CPTPP preferences apply only if the goods qualify. For UK goods, verify which agreement yields the best results.
Plan for Longer Lead Times. Adjust reorder points and safety stock to accommodate a two-to-three-week ocean transit. Consider warehousing near the port of entry.
Keep Air Freight in Reserve. For urgent or high-value parts, air freight can bridge the gap while ocean lanes stabilize.
Speed Global Logistics handles air and ocean freight (FCL and LCL), customs brokerage with classification, valuation, and duty consulting, as well as warehousing and distribution. Every shipment receives real-time tracking. If you're testing a new European or UK supplier, we can assist you in pricing and setting it up correctly the first time.
Read the full interview in The Loadstar: *Canada looks to EU and UK to replace tariff-hit US shipments
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