Hint: Compliance is key.
New U.S. tariff actions are creating fresh uncertainty for Canadian businesses, but for automotive aftermarket distributors, the message is becoming increasingly clear: compliance is now a competitive necessity.
Ashley Kalyn, International Trade Consultant with Peacock Tariff Consulting, outlines why the latest round of tariffs differ from previous measures- and why we should take these new measures seriously.
Kalyn emphasizes that these latest tariffs differ from previous measures because they are based on a stronger legal foundation, making them more likely to remain in place. While negotiations between Canada and the United States continue, businesses should prepare for the possibility that tariffs will become a permanent feature of cross-border trade rather than a temporary disruption.
For the automotive aftermarket, the latest announcement adds to pressure already created by Section 232 tariffs affecting steel and aluminum. “Every time a tariff is imposed, it hurts,” Kalyn says, noting the immediate concerns and impacts: distributors and manufacturers can expect the familiar pattern that follows most tariff actions- margins tighten, companies absorb as much of the added cost as possible, and prices gradually rise over time.
More important than pricing, however, is ensuring full customs compliance.
“Compliance is the single biggest lever on exposure,” Kalyn said, warning that U.S. Customs and Border Protection is scrutinizing imports more closely than ever. Misclassified products, inaccurate documentation or other compliance errors can now lead to significant financial consequences and shipment delays, rather than simply a warning.
For distributors moving inventory across the Canada-U.S. border, the stakes are especially high. Cross-border supply chains, multiple distribution points and high inventory volumes leave little room for administrative mistakes. Kalyn recommends reviewing tariff classifications, staying current on changing regulations, exploring duty drawback and bonded warehouse programs where appropriate, and developing contingency plans for sourcing and pricing before new measures take effect.
She also encourages businesses to diversify suppliers and build greater flexibility into their distribution networks rather than relying on a single cross-border flow of goods.
While many in the industry hope trade policy eventually stabilizes, Kalyn believes businesses should plan for a future where tariffs remain a regular part of international commerce. Governments, she argues, are unlikely to abandon a growing source of revenue once it has been established.
For aftermarket distributors, the takeaway is straightforward: don’t wait for certainty. Invest in compliance, strengthen supply chain resilience and prepare for continued trade volatility. Those steps may prove just as important as managing inventory and customer relationships in the months ahead.
To hear more from Ashley on this crucial topic, check out the latest Great Canadian Aftermarket Podcast episode below, in video and audio.
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