Canada imposes 25% tariffs, A.I. reshapes LTL logistics, and retailers tackle returns

by | Jan 31, 2025 | Business Development

Richard Freedhoff

Richard Freedhoff

Director, Business Development

Direct: 1-705-606-4388
Book a Logistics Consultation
rfreedhoff@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. 

Recently in Logistics; Canada has responded to the Tariffs imposed by the United States with Tariffs of their own. A.I. is optimizing LTL logistics with predictive analytics. Retail returns are set to hit $890B in 2024, driven by e-commerce. Canada’s retail sector remains strong, with high demand in grocery, fitness, and luxury. Spending on generative A.I. apps like ChatGPT and Google Gemini soared to $1.1 billion in 2024.

Canada is imposing 25% tariffs on $155 billion worth of U.S. imports in response to U.S. tariffs on Canadian goods. The first phase, starting Feb. 4, targets $30 billion in products like orange juice, beer, and appliances, while the second phase will cover items such as vehicles, steel, and dairy. Canadian officials called the U.S. tariffs unjustified and warned of potential further measures if they continue. Both nations have left the door open for further trade escalations.

Source: Supply Chain Dive

A.I. and predictive analytics are transforming LTL logistics by optimizing operations and improving delivery accuracy. Experts stress the need for data context, collaboration, and predictive modeling to drive efficiency. As A.I. adoption grows, it will refine logistics strategies and automate key processes, making data-driven decision-making essential for industry leaders.

Source: Supply Chain 247

Retailers are facing increasing return rates, with total returns projected to reach $890 billion in 2024, driven largely by e-commerce shopping habits. Fraudulent behaviors like bracketing and wardrobing are growing concerns, prompting retailers to tighten policies while balancing customer satisfaction. Apparel remains the most frequently returned category, especially after promotional periods. To manage costs and prevent abuse, businesses are refining their return strategies while maintaining convenience for trusted shoppers.

Source: Retail Dive

Canada’s retail sector remained resilient in 2024, with low vacancies and high tenant demand, especially in grocery, fitness, and luxury apparel. While sentiment is positive for 2025, factors like immigration trends, tariffs, and interest rate fluctuations could create hurdles. Despite limited new development, rental growth continues in key markets, with grocery and athleisure brands expanding.

Source: Retail Insider

Consumer spending on generative A.I. apps like ChatGPT and Google Gemini surged 200% year-over-year in 2024, reaching $1.1 billion. This rapid growth positions the category to potentially enter the top 10 by consumer spending within a year. The wider availability of these A.I. platforms contributed to a significant rise in revenue, while overall consumer time spent on mobile devices increased 5.8%. As consumers become more accustomed to in-app purchases, the mobile app market continues to evolve, with new categories gaining traction.

Source: Retail Dive

Are your logistics requirements being effectively addressed? As we head into 2025 let’s explore your eCommerce fulfillment strategies. You can book a brief call with our team of seasoned logistics professionals to evaluate your needs and formulate a customized plan to propel your business forward.

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NLS Logistics Team
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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