March 31, 2025 – With a range of tariffs to be implemented on Wednesday by the U.S., shippers will need to make some hard choices – and likely pay some “hard dollars.” The tariffs are set to be paid by U.S. importers, those established as an ‘importer of record’ and able to open a payment account with U.S. Customs & Border Protection (CBP). Although our Canadian customer are not directly having to pay these tariffs, the impact will still be felt by the US Customer. The ramifications of the new trade barriers will only be discovered once shippers have made some choices, said James Hookham, director of Global Shippers Forum. “The real impact on trade and economies will come from the way that U.S. importers respond to this additional cost. Do they ‘pay and absorb’, and take a hit on profits, and their share price? “Do they ‘pay and inflate’ – pass the cost on in higher retail prices and probably lose market share to home-produced products? “Or do non-U.S. manufacturers look to reduce their export price and effectively pay the tariff themselves, but at least maintain their current prices in the U.S. market? We call that ‘pay and squeeze’.” There are other options – but not quick ones, and the benefits could change overnight depending on Canadian retaliatory tariffs.