Tariff policies can shift quickly in response to trade tensions, national security concerns, or seasonal quota thresholds. That’s why, when moving freight across Mexico, the United States, and Canada, one of the most frequent points of confusion for our clients is tariffs: how they work, when they apply, and how to avoid unexpected costs at the border.

In today’s evolving trade landscape, understanding tariffs is more critical than ever. With shifting trade agreements and ever-changing tariff rules, importers and exporters need to stay informed to prevent costly delays and disruptions in their supply chains.

In this article, we answer the top 10 most common questions we receive at Mexicom Group, offering clear explanations and real-world examples tailored to North American cross-border trade.

1. What is a tariff, and how does it affect freight shipping between Mexico, the U.S., and Canada?

A tariff is a government-imposed tax on imported goods, paid at the border. It’s usually calculated as a percentage of the product’s value. Tariffs can affect the cost, demand, and flow of goods between countries.

• Shipping costs (higher prices for taxed goods)

• Supply chain decisions (companies may reroute shipments to avoid tariffs)

• Trade compliance (proper classification and documentation are key)

While the U.S., Mexico, and Canada are part of a trade agreement—called USMCA in the U.S. and Mexico (or CUSMA in Canada)—that aims to facilitate fair and tariff-free trade among the three countries, it doesn’t guarantee complete protection from tariffs. The agreement allows for exceptions in certain cases, such as when a country invokes national security concerns. For example, the U.S. has imposed tariffs on Canadian goods in 2018, 2020, and 2025, each time citing national security as the reason—an action permitted under USMCA/CUSMA provisions. This highlights the importance of not only understanding how tariffs work but also keeping up with ongoing trade policies that may impact your shipments.

Example: Simply transporting freight from Canada or Mexico to the United States does not automatically exempt a product from paying tariffs. Exporters must follow a rigorous process to obtain preferential treatment under USMCA. If the freight does not meet the requirements or lacks the proper documentation, it may be subject to tariffs according to the current, and constantly evolving, U.S. tariff policies.

2. Who pays tariffs on cross-border shipments—shipper or consignee?

The party that pays the tariff depends on who acts as the importer of record—typically the consignee, unless otherwise agreed in the contract terms (Incoterms).

• DDP (Delivered Duty Paid) = shipper pays.

• DAP (Delivered at Place) = consignee pays at destination.

Example:

U.S. importing goods from Canada
Let’s say a company in Texas imports aluminum parts from a supplier in Ontario, Canada. If they agree on DDP (Delivered Duty Paid) terms, the Canadian shipper takes care of the tariffs and delivers the goods duty-paid. But if they use DAP (Delivered at Place) or EXW (Ex Works), the U.S. company (the consignee) becomes the importer of record and is responsible for paying any applicable U.S. tariffs at the border.

This is especially relevant during recent trade tensions. For instance, when the U.S. imposed tariffs on Canadian aluminum under national security justifications (as it did in 2018, 2020, and 2025), many U.S. buyers were surprised by the sudden increase in costs. Even though these two countries are part of CUSMA/USMCA, tariffs can still apply in exceptional cases—making it essential to clarify who’s paying what before shipping.

3. What’s the difference between a tariff, a duty, and a tax in North American trade?

• Tariff: A customs charge on imported goods based on classification and origin.

• Duty: General term for import fees, includes tariffs and any additional charges.

• Tax: Local taxes like VAT (IVA in Mexico), GST (in Canada), or state tax in the U.S.

Example:
Shipping industrial fans from the U.S. to Mexico may incur:

• 0% tariff if USMCA-qualified,

• 16% VAT (IVA) upon entry into Mexico, charged to the Mexican importer.

4. How can I find the tariff rate for my product when shipping within North America?

You need your product’s HS/HTS code and knowledge of:

• Origin of the goods,

• Destination country,

• Applicable trade agreements.

Steps:

1. Classify your product using national tariff databases (e.g., U.S. HTS, Canada Tariff Finder, Mexico’s TIGIE).

2. Check if it qualifies for USMCA.

3. Confirm proper documentation to claim exemption.

Example:
A U.S. company exporting refrigeration components to Canada can check Canada’s Customs Tariff. If components meet the origin criteria and are properly documented, the shipment will clear with 0% tariff.

5. Can I reduce or avoid tariffs legally?

Yes, in some cases. Strategies include:

• Using In-Bond shipments (especially if the cargo will transit the U.S. without entering the market)
• Proper use of USMCA certifications
• Classifying goods accurately
• Storing goods temporarily in a bonded warehouse
• Opening your own business in the U.S.

📍At our Laredo Warehouse, Mexicom USA, is ready yo dispatch In-Bong shipments and strategically positioned to support these cost-saving strategies.

More information on how to reduce tariffs in our FREE WEBINAR (in Spanish):
Reduce U.S. Tariffs by up to 50%: What Exporters in Mexico and Canada Are Doing Today

• Date: Tuesday, July 1

• Time: 5:00 p.m. (Central Mexico Time)

• Format: Online

• Register here: https://forms.gle/2hpVK3ZLKiB4naFY9

6. What happens if I misclassify my product or file incorrect tariff documentation?

You may face:

• Retroactive tariffs and fines,

• Delays at the border,

• Customs audits,

• Loss of USMCA eligibility for future shipments.

Example:
A U.S. exporter mistakenly classifies Mexican-made safety gloves under an incorrect HTS code, claiming USMCA benefits. Upon audit, CBP finds the gloves use synthetic fibers from outside North America. The result: a duty reassessment, penalties, and a flag on the importer’s compliance record.

7. Can I ship In-Bond within North America to manage tariffs?

Yes. In-Bond shipments allow goods to pass through one country without entering commerce or triggering duties, typically under a T&E (Transportation & Exportation) or IT (Immediate Transportation) entry.

Example:
A Canadian company buys machine parts from Mexico but routes them through a U.S. distribution hub in Laredo. By using In-Bond documentation, they avoid paying U.S. duties, since the goods are just transiting to Canada.

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8. How Do Tariffs Impact Trucking Freight?

Tariffs increase the cost of imported goods, and those extra costs often ripple into freight rates, especially for cross-border trucking between Mexico, the U.S., and Canada.

They can lead to:

• Border delays, due to increased customs inspections

• Route and volume shifts, as companies restructure supply chains

• Reduced demand in certain lanes, affecting carrier capacity and pricing

Example: A U.S. importer paying tariffs on Canadian aluminum may delay shipments or consolidate loads, increasing transit times. Or, a buyer may shift sourcing from China to Mexico—creating more volume on U.S.–Mexico corridors.

✅ Tip: Partner with an experienced 4PL or cross-border logistics provider  like Mexicom Group, who can help minimize delays and optimize costs when tariffs are involved.

9. Do tariffs change over time?

Yes. Tariff rates can change due to:

• New trade policies
• Retaliatory tariffs
• Changes in trade agreements

That’s why staying informed—and working with experienced logistics providers such as Mexicom Group —is key.

10. Where can I learn more or get help with tariffs for my shipments?

We offer customs support, warehousing, and Door-to-Door transportation with tariff expertise built-in.

Join our free webinar with Aldo Medina, from Mexicom Group, where we’ll share a strategy to reduce U.S. tariffs up to 50%.

👉 Reserve your spot here