Tariffs and AI shape 2026 supply chains, Amazon expands in Canada, and apparel sales outperform

Ian Sinclair

Ian Sinclair

EVP, Commercial Solutions

ISinclair@nls.ca

National Logistics Services
150 Courtneypark Drive West
Mississauga, Ontario

In turbulent economic times, a true logistics partner can scale up, optimize and help your fast-moving enterprise adapt and thrive. 

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KPMG warns supply chain disruption will continue into 2026, shifting focus from resilience to total value. Amazon’s Canada Impact Report highlights $65B invested since 2010, supporting 46,000 jobs and nearly 70 logistics sites. U.S. apparel sales rebounded in 2025 despite tariffs. Canadian retailers are moving from AI pilots to practical gains across operations. Looking to 2026, supply chain leaders are prioritizing cost control, labour constraints, and trade risk.

KPMG’s latest report says supply chains will face continued disruption in 2026, with more focus on creating “total value” rather than resilience alone. It highlights deeper centralization through Global Business Services models and broader AI use, moving from pilots to embedded decision-making. Tariffs and trade uncertainty are accelerating supplier diversification, footprint changes, and AI-driven scenario planning to manage cost and risk.

Amazon’s 2025 Canada Impact Report shows more than $65 billion invested since 2010, supporting over 46,000 jobs, nearly 70 logistics sites, and an estimated $55 billion GDP impact. Recent investments focus on expanding fulfillment and delivery networks, raising frontline wages, and growing training programs. The report also highlights support for small businesses, AWS expansion, sustainability efforts, and Canadian content production.

U.S. apparel sales rebounded in 2025, rising year over year in every month but one through October, despite tariffs and consumer caution. Retailers including Gap, Abercrombie, American Eagle, and Urban Outfitters posted stronger-than-expected Q3 results, supported by marketing and social engagement. Analysts say solid Black Friday performance and Q3 earnings challenge concerns about a weakening apparel consumer.

Canadian retailers are shifting from AI testing to practical use, prioritizing internal gains in merchandising, content, order management, and fulfillment. Most are running modular pilots to improve productivity, inventory visibility, delivery accuracy, and search relevance while limiting risk. As competition from global platforms grows, AI is being used to strengthen networks, support marketplace models, and enhance in-store experiences.

As planning for 2026 begins, supply chain leaders are focusing on practical steps to manage rising costs, tight labour, and trade uncertainty. Priorities include better use of automation and warehouse space, closer tracking of tariff risks, and stronger cost controls. With warehouse capacity and power availability tightening, early planning and targeted technology investments remain critical.

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NLS Logistics Team Communications
As a leading Third Party Logistics (3PL) firm, we have the strategic infrastructure, technology relationships, and insights to help Canadian and international brands reach and serve the Canadian market
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