US tariff threats put Canada trade talks at risk, exporters face pressure, and supply chains diversify

Ian Sinclair

Ian Sinclair

EVP, Commercial Solutions

ian.sinclair@nls.ca

National Logistics Services
150 Courtneypark Drive West
Mississauga, Ontario

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Recently in Logistics; Trade uncertainty continues to put pressure on Canadian exporters and cross-border commerce, while businesses look to diversify suppliers and strengthen supply chain resilience. Disruption also remains a top concern for retail leaders, reinforcing the need for more adaptable operations. Meanwhile, AI investment is accelerating across supply chains, even as companies face challenges in measuring its business impact.

Canada’s lead trade negotiator has warned US officials that new 50% tariffs could put ongoing trade talks at risk. Canada is seeking relief from US tariffs on key goods, while discussions also cover issues including provincial alcohol bans, auto counter-tariffs, and dairy quotas. Both sides are working toward a potential trade deal outline ahead of the Aug. 19 deadline.

Source: BNN Bloomberg

A new CFIB survey finds that 40% of Canadian small exporters to the U.S. sell goods that could face the proposed 50% tariff, including products that comply with CUSMA. Among affected businesses, 77% expect revenue declines, with more than one-third anticipating losses of at least 50%. The tariff threat is raising significant concern among small exporters that may struggle to absorb the added costs or remain competitive in the U.S. market.

Source: Retail Insider

Canadian businesses are prioritizing supplier diversification to strengthen supply chain resilience amid growing trade uncertainty. A DP World survey found that 62% plan to increase their number of suppliers, while others are raising inventory levels and exploring nearshoring and friend-shoring. Companies are also looking to new markets, AI, and stronger infrastructure to support growth and build more flexible supply chains.

Source: Inside Logistics

Supply chain disruption has become a critical concern for retail leaders, with 95% of Canadian and US respondents calling it extremely or very important to their organizations. Transportation bottlenecks, labour shortages, and changing trade policies are driving retailers to adjust routes and strengthen resilience. Technology is also playing a larger role, with retailers increasing investments in forecasting, inventory management, disruption planning, and third-party logistics.

Source: Inside Logistics

Supply chain leaders are increasing AI investments, but many still struggle to measure their returns, with 55% unable to clearly identify the ROI of their AI initiatives. AI now accounts for 67% of supply chain digital spending, creating more use cases than many organizations can effectively support. Gartner says companies need stronger AI change strategies that focus resources on initiatives tied to measurable business outcomes.

Source: Inside Logistics

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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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