Why Canadian importers are turning to Europe and the UK

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 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

What changed in the last few weeks

The US put a 50% tariff on $27.6 billion of Canadian goods starting August 22, 2026, and Ottawa responded by matching 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 picture across the Atlantic is very 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, so importers can pick whichever of the two agreements works better for a given shipment. Official agreement and side instruments +2

What we're seeing on the ground

As Steffen told The Loadstar, the push is strongest in industrial manufacturing, automotive components and consumer packaged goods. These are sectors with thin margins, where a 25% to 50% tariff can wipe out the profit on a product line. theloadstar

This is not a sudden flood of containers. Shippers are sending trial batches, a few TEU or LCL loads from the EU, so they can measure transit times and landed costs. That approach makes sense. Changing suppliers means 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 on the water. That affects carrying costs and warehouse space. theloadstartheloadstar

Things at the border are also harder than they were. Customs brokers are working through a lot of complex paperwork on tariff exemptions, and some cross-border lanes have slowed as companies hold shipments while they wait for more clarity. Our team now spends more of its time helping clients with compliance and tariff planning, and less time simply booking moves. theloadstar

We expect the mode mix to change. Steffen expects less cross-border trucking and more ocean freight arriving at Montreal, Saint John and Halifax, with more transatlantic air freight for high-value, time-sensitive goods. theloadstar

Why this is more than a short-term reaction

As Steffen put it, "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 already learned that they relied too heavily on one trading partner. He expects the move toward European sourcing to speed up through Q4 and into next year. theloadstartheloadstar

If you're thinking about sourcing from Europe or the UK

Here's how we suggest approaching it:

• Start small. Consolidate a first order as an LCL shipment before you commit to full containers. You'll see real transit times and costs without taking on much risk.

• Compare landed cost, not unit price. Put ocean freight, insurance, duties and brokerage for a European supplier next to what the same product now costs from the US with tariffs.

• Check rules of origin early. CETA and CPTPP preferences only apply if the goods qualify. For UK goods, it's worth checking which agreement gives the better result.

• Plan for longer lead times. Adjust reorder points and safety stock for a two-to-three-week ocean transit, and think about warehousing near the port of entry.

• Keep air freight in reserve. For urgent or high-value parts, air can cover the gap while ocean lanes settle in.

Speed Global Logistics handles air and ocean freight (FCL and LCL), customs brokerage with classification, valuation and duty consulting, and warehousing and distribution. Every shipment gets real-time tracking. If you're testing a new European or UK supplier, we can help you price it and set it up properly the first time.

Get a free quote on our website, call us at +1 647-877-8083, or email info@speed-global-logistics.com.

Read the full interview in The Loadstar: Canada looks to EU and UK to replace tariff-hit US shipments