If your business relies on shipping goods from Canada to the U.S., you’re probably keeping a close eye on the new tariffs taking effect on March 4, 2025.

With a 25% tariff on most Canadian exports, manufacturers, retailers and supply chain leaders are facing rising costs and tighter margins, prompting them to rethink their logistics strategies.

We’re already hearing from companies that are asking:

• How will these tariffs impact my bottom line?
• What options do I have to reduce costs?
• Can I adjust my logistics strategy to stay competitive?

While we aren’t legal experts on tariffs, at Red River Freight, we do know logistics. Located near the U.S.-Canada border, we have extensive experience in cross-border shipping and have been working closely with businesses exploring practical ways to adapt.

From U.S.-based warehousing to shipment consolidation and outsourced logistics, we’ve seen how adjustments to the supply chain can reduce costs and ease the impact of tariffs.

The reality? These tariffs may require businesses with long-established operations to change their model to manage added costs effectively.

But there are steps you can take to protect your bottom line – and at Red River Freight, we know what works from experience.

This guide will help you assess your options, optimize your supply chain, and explore new strategies to stay competitive.

Step 1: Understanding How U.S. Tariffs Impact Your Business

Before making any decisions, it’s essential to determine how these tariffs directly impact your business. Taking stock of your situation early can help you avoid costly surprises and position your business for a smoother transition.

Here are the first things to consider:

• Are your products subject to tariffs? Review tariff classifications and confirm whether your goods fall under the new restrictions.
• Can your business absorb the added costs? Some companies can adjust pricing to offset increased costs, while others may need to explore alternative logistics solutions.
• How urgent is the situation for your business? Are you already experiencing the impact of tariffs, or do you have time to adapt your supply chain before major disruptions occur?

Why This Matters:

Understanding how tariffs affect your costs, margins and operations is the first step toward making informed decisions about your logistics strategy.

Step 2: Reduce Tariff Costs with Smarter Logistics & Warehousing

Many businesses are reassessing how and where they store and ship their goods to reduce tariff-related costs. Re-evaluating your logistics setup now can lead to significant savings and efficiency improvements. Optimizing your storage and fulfillment strategy can help minimize fees and improve delivery times.

Here’s what to assess:

• Are you currently shipping directly from Canada to U.S. customers? If so, you may be paying unnecessary cross-border fees every time you ship.
• Would U.S.-based warehousing help you avoid repeated border fees? Storing inventory in the U.S. eliminates the need for multiple cross-border shipments and allows for faster order fulfillment.
• Do you need better inventory control? A 3PL provider like Red River Freight offers real-time inventory tracking, helping you manage stock levels, reduce errors, and improve efficiency.

Why This Matters:

Businesses that store inventory in U.S.-based warehouses can reduce shipping costs, speed up deliveries and avoid customs delays, ensure smoother operations and a better customer experience.

Step 3: Identify Cost-Saving Logistics Strategies

With rising costs, businesses must explore ways to adjust their supply chains and logistics processes to remain competitive. A proactive approach to logistics can significantly offset the financial burden of tariffs.

We suggest that you consider the following options:

• Can you consolidate shipments to reduce cross-border transactions? Larger, less frequent shipments may be more cost-effective than multiple smaller shipments.
• Are you considering shifting some production or assembly to the U.S.? Some businesses are moving final assembly or packaging to the U.S. to reduce tariff exposure while keeping manufacturing in Canada.
• Would outsourcing fulfillment free up resources for your team? Managing shipping in-house can be costly. A 3PL provider can handle warehousing, order processing and shipping, allowing you to focus on growing your business.

Why This Matters:

A strategic logistics plan can help offset tariff costs while ensuring a seamless supply chain and sustained business growth.

Step 4: Consider a 3PL Partner to Reduce Costs and Improve Logistics

With the right logistics strategy, businesses can reduce tariff-related expenses and maintain smooth operations, even in times of change. Working with an experienced 3PL partner gives you access to cost-saving solutions like U.S.-based warehousing, consolidated shipping, and optimized inventory management.

Here are some key questions to consider:

• Do you fully understand your logistics options? Many businesses are unfamiliar with how 3PL services work and the ways outsourcing can simplify cross-border operations while reducing costs.
• Do you have a logistics partner who can help you make strategic decisions? At Red River Freight, we’re actively working with businesses navigating these challenges, helping them develop cost-effective shipping strategies, optimize warehousing and minimize tariff impacts.

Why This Matters:

You don’t have to navigate these tariff changes alone. A trusted 3PL provider can offer scalable solutions, expert guidance, and logistics strategies tailored to your business, ensuring you stay competitive even in a changing trade landscape.

How Our 3PL Services Help Businesses Manage Tariffs and Reduce Costs

Strategic U.S.-Based Warehousing

RRF’s facility in Pembina, North Dakota, is located just minutes from the Canadian border. This allows businesses to store inventory in the U.S., avoiding repeated cross-border fees and ensuring faster delivery times to American customers. Our secure and scalable storage solutions provide the flexibility businesses need to adapt to changing demands.

Experience and Expertise in Cross-Border Logistics

With years of experience in 3PL services and supply chain management, we understand the complexities of cross-border shipping. From customs requirements to inventory control, our team has the knowledge to help businesses navigate these challenges with confidence.

A Team That Listens and Builds Solutions Together

We know that every business is unique. That’s why we take the time to understand each client’s specific needs, offering personalized consultations to help businesses find the best logistics strategies. Whether it’s optimizing shipments, adjusting inventory storage, or managing fulfillment, we work side by side with our clients to develop tailored solutions.

Flexible Services to Meet Changing Needs

Whether you need short-term storage to respond to tariffs or a long-term logistics partner, we offer adaptable solutions. From batching shipments to handling reverse logistics and managing high-value goods, RRF is equipped to provide businesses with efficient, cost-saving options.

3PL in Action: Supporting Canadian Businesses Through Tariff Challenges

Bushel Plus, a Canadian firm specializing in minimizing grain loss during harvest, had been considering RRF’s 3PL services to support their growing U.S. customer base. When news of the new tariffs broke, they quickly took action.

Understanding the potential cost impact of the 25% tariff, Bushel Plus sent 20 skids of inventory to our Pembina warehouse. By storing their products within the U.S., they can now fulfill American orders without incurring repeated cross-border fees, helping mitigate the tariff’s impact on their bottom line.

This proactive approach, supported by RRF’s experienced team and strategic location, is helping Bushel Plus continue serving their U.S. customers efficiently despite changing trade conditions. It’s one example of how Canadian businesses are adapting – and how our team at RRF is helping them to do it.

Navigating Tariffs with Confidence: How to Move Forward

While the new tariffs bring challenges, they also present an opportunity for businesses to rethink and optimize their logistics strategy. With the right plan in place, companies can reduce costs, improve efficiency, and maintain strong relationships with their U.S. customers.

At Red River Freight, we bring years of experience in cross-border logistics, helping businesses adapt to industry shifts while keeping their operations running smoothly. From strategic warehousing to smarter fulfillment solutions, our 3PL services are designed to help businesses overcome tariff-related obstacles.

If you’re looking for solutions, we’re here to help. Let’s talk about your business, explore your options, and build a logistics strategy that works for you.