US tariffs were continuing to keep supply chain executives on their toes this week, with US airfreight forwarders expressing concern that the proposed new tariff on imports from Canada could drive up supply chain costs, while the White House has come to an agreement with China over their trade dispute.
In North America, US president Donald Trump late last week threatened Canada with additional tariffs of 10% in response to an advert that featured anti-tariff speech from former US president Ronald Regan. He also broke off trade talks with Canada.
Currently, Canadian imports not protected by the Canada-United States-Mexico trade agreement are subject to a tariff rate of 25%.
Addressing delegates at the Canadian International Freight Forwarders Association (CIFFA) Annual Conference in Toronto, Canada, Airforwaders Assocation (AfA) executive director, Brandon Fried, said the measure would “punish American businesses and consumers more than it protects them,” calling for a pause on escalating trade barriers.
“Tariffs don’t build resilience; they build cost,” said Fried. “Every additional charge ripples through the supply chain, from warehouse floors to retail shelves. To encourage growth, we need smarter policy and more cooperation, not higher walls.”
Fried said higher tariffs risk derailing recent progress in restoring air cargo capacity, and urged policymakers to focus on predictable trade conditions that support long-term investment.
Meanwhile, the US yesterday came to a framework agreement with China that avoided the implementation of 100% tariffs.
The dispute saw US president Donald Trump threaten to increase existing tariffs on China by 100% from 1 November in response to Beijing’s decision to implement restrictions on the export of rare earth minerals used in items ranging from consumer electronics to cars.
However, the framework agreement sees the White House roll back its latest tariff threat while China has lifted export controls on rare earth minerals and increase its purchase of soya beans and other farm products from the US.
The agreement will last 12 months and gives the countries time to continue trade negotiations.
