Cross-Border Freight Between the U.S., Canada, and Mexico: What to Know

Executive Summary

Cross-border freight between the U.S., Canada, and Mexico was up 22.6% year over year in August, and paperwork mistakes cost more than they used to. Goods that qualify for USMCA avoid a 10% Section 301 tariff, though listed Canadian products still owe 50% under Section 338. Mexico is checking declared values before freight arrives, and Canadian importers may owe more CARM security by January 15. We explain what changed and how to plan around it.

Key Takeaways

1. USMCA paperwork matters: Proper classification and origin records can mean the difference between duty-free treatment and additional tariffs.
2. Canadian tariffs remain steep: Certain goods face 50% duties, even with USMCA eligibility.
3. Mexico is tightening customs checks: Declared values and supplier records face greater scrutiny before arrival.
4. Crossing plans affect delivery dates: Choose the right border, carrier, and handoff arrangement to avoid delays.
5. Cargo protection goes beyond theft: Verify carriers, check insurance coverage, and match handling requirements to your freight.

Intro 

There’s a lot that can go wrong moving freight between the U.S., Canada, and Mexico, and surprisingly little of it requires anything to go wrong with the truck.

Take a load of parts leaving Monterrey for a Memphis plant that starts production Monday. The carrier’s booked and the date is carved in stone, until the customs broker opens the invoice and finds “parts, misc.” Now the truck’s going nowhere, and the border’s taking the blame for somebody else’s paperwork.

A lazy invoice is only one way cross-border freight gets expensive, though. Frankly, it barely even scratches the surface. Consider the five things below.

1. Your USMCA Paperwork Is Worth More Than It Used to Be

Start with the duties, because the same shipment can carry two very different price tags depending on whether it qualifies for USMCA.

Goods qualifying for USMCA preferential treatment are generally duty-free, while those that don’t face an additional 10% Section 301 tariff introduced July 24. That’s a hefty premium for getting your paperwork wrong. Claiming USMCA preferential treatment takes more than checking a box, and eligibility does not automatically exempt shipments from other applicable tariffs, including certain Section 232 and Section 338 measures.

Your customs broker needs three things:

1. A proper product description for customs classification.
2. Proof of origin, backed by supplier records showing the goods meet USMCA requirements.
3. Mill certificates for steel and aluminum, where October’s Section 232 guidance introduced a 15% minimum duty on qualifying non-U.S. metal content.

Our old friend “parts, misc.” won’t cut it, and a Mexican shipping address proves precious little about origin.

Keep those records handy too. The U.S. declined a 16-year USMCA extension in July, meaning annual reviews are now on the calendar.

2. Canadian Goods Can Owe 50% No Matter What the Paperwork Says

There’s a catch to all that USMCA paperwork. You can get every detail right and still owe another 50% on certain goods coming from Canada. So much for the duty-free victory lap.

Under Section 338, that extra 50% applies regardless of USMCA eligibility and can stack on top of Section 232 duties where applicable. Making matters worse, Washington keeps changing which products get caught. The October 30 update removed 22 tariff codes and added 100:

• Off the list: Corrugated cartons, paper sacks, and thin plywood sheets.
• On the list: MDF, fiberboard, paper labels, and dozens of carpet types.

An importer is challenging the tariffs in court, and Prime Minister Mark Carney says trade talks are intensifying. We’d love some relief, but hopeful headlines don’t pay duty bills. Budget for the 50% until the rules actually change.

The headache runs both ways too. Canada has surtaxes of up to 50% on listed U.S. goods, USMCA or not.

3. Mexico Is Checking Declared Values Before Freight Arrives

Mexico has its own tariff problem, and Customs is now looking for suspiciously low prices before shipments even reach the border.

The concern goes back to January, when Mexico introduced 5% to 50% tariffs on 1,463 product lines from countries without trade agreements. Those duties give importers plenty of incentive to fudge invoice values or origins, and Mexican Customs knows it.

On November 4, customs agency ANAM said shipments can arrive “already flagged” after advance checks. Officers have even looked up factories on Google Maps to see whether suppliers are telling the truth. Apparently, the factory has to exist outside the paperwork.

Mexico’s also demanding more proof. Electronic value declarations began phasing in November, and new seizure rules arrive January 1.

Get invoices, freight and insurance costs, and payment records to your broker early. Our customs brokerage team can check them against the pedimento and Carta Porte before the truck arrives.

4. Your Crossing and Handoff Plan Sets the Delivery Date

Getting the paperwork right won’t help much if your freight spends the next two days sitting at the wrong crossing. The route matters, but so does what happens to your shipment once it gets there.

Take Monterrey. Laredo is usually your best bet, having handled $37.7 billion in August trade, with plenty of brokers and carriers. Freight leaving Juárez makes more sense through El Paso. Meanwhile, the Gordie Howe International Bridge (pictured) opened July 27, giving Canadian shippers another Detroit-area crossing worth quoting.

Then there’s the handoff, where an otherwise sensible plan can get expensive. Swapping tractors keeps your trailer sealed, while transloading means handling the cargo again, adding time and another opportunity for damage or theft. Approved Mexican carriers can also operate beyond border commercial zones, so a transload isn’t always necessary.

Finally, match the transportation to the freight. Full truckload works best for time-sensitive production parts, LTL suits smaller recurring shipments, and rail makes sense for heavier loads like paper rolls.

5. Protect Your Freight, Not Just the Delivery Date

Getting freight across the border on time is one thing. Making sure it arrives in one piece, or arrives at all, is another. Every handoff gives thieves another opportunity, and they’re getting remarkably good at talking their way into a trailer.

Verisk CargoNet recorded 547 reported supply-chain crime incidents across the U.S. and Canada in Q3 2026, down roughly a third, yet losses climbed 12% to $230.1 million. About 1-in-4 involved someone impersonating a legitimate carrier and simply collecting the freight.

Verify carriers and drivers, confirm delivery changes through trusted contacts, and record seals at every handoff. Check insurance too. Without a declared value, Mexican carrier liability is capped at 15 days of minimum wage per ton. Good luck replacing stolen electronics with that.

Thieves aren’t the only threat. Cotton and paper need to stay dry, electronics need tighter security, and medical goods may require climate control. Even wood pallets need ISPM 15 marks, unless the Canada-U.S. exemption applies.

How Mallory Alexander Keeps Cross-Border Freight on Schedule

At Mallory Alexander, we start with the delivery date and work backward. If your Monterrey supplier is feeding a Memphis production line on Monday, we’d rather sort out the paperwork, tariffs, and border crossing now than explain on Friday why your parts aren’t moving.

Our customs brokerage and transportation teams work together to make that happen. We check classifications, USMCA eligibility, and declared values, then coordinate the carriers, crossings, and handoffs that get your freight where it belongs. We also account for duties, storage, and potential detention fees, because nobody enjoys discovering the real cost of a shipment after it’s delivered.

We’ve been moving freight since 1925, with 31 locations and a Laredo team that’s worked the border for nearly 30 years. Our warehousing network gives shippers room to absorb delays, while myMALLORY helps us spot trouble before it reaches your customer’s doorstep.

Talk to our team about your next cross-border shipment. We’ll work through the details together.

FAQs About Cross-Border Freight

What Is Cross-Border Freight?

Cross-border freight is any commercial cargo that crosses an international border, whether it moves by truck, rail, air, vessel, or pipeline. In North America, trucks carry about two-thirds of U.S. trade with Canada and Mexico by value, and Laredo and Detroit are the busiest gateways. BTS publishes the numbers every month.

What Documents Does a Cross-Border Shipment Need?

Every shipment starts with the same core documents: a commercial invoice, packing list, transport document, and origin support that agree on description, value, quantity, and weight. Each country then adds its own filings, such as a U.S. entry with FDA codes for medical devices, Canada’s CARM registration, or Mexico’s pedimento and Carta Porte.

Does USMCA Require a Special Certificate of Origin Form?

No. USMCA doesn’t prescribe a form, so the certification can go on an invoice or any other document that includes the nine minimum data elements in Annex 5-A. The importer, exporter, or producer can complete it, but the goods still have to meet the rules of origin, and customs can verify the claim after release.

What Should Canadian Importers Check in CARM Every October 20?

Check your annual Release Prior to Payment (RPP) security notice. Each October 20, CBSA recalculates the security you need based on your highest monthly accounts receivable over the past year. If the amount went up, you’ll need to post the increase by January 15, 2027, to keep RPP, and importers now post their own security.

When Does Mexico’s Electronic Value Declaration Become Mandatory?

It phases in by customs regime under SAT’s October 2 announcement: bonded processing November 1, 2026, strategic bonded facilities November 15, transit December 1, bonded warehouses December 15, temporary imports January 1, 2027, and definitive imports January 15, 2027. Your Mexican broker can confirm which regime applies to your freight.

Does Freight Have to Be Transloaded at the U.S.-Mexico Border?

No. Mexico-domiciled carriers with FMCSA long-haul authority can operate beyond the border commercial zones, and through-trailer service keeps cargo in one sealed trailer while tractors change. Many loads still use a short drayage move across the bridge, so confirm the handoff and who’s liable at each step when you book.