Customs brokers and freight forwarders are facing mounting stress due to the Trump administration’s aggressive tariffs, which introduced sweeping and sudden duty hikes on goods from major trade partners. As a result, challenges abound.
With complex and shifting tariff rules, brokers’ automation systems could not be relied upon 100% and manual reviews became the norm — new tariffs and classification changes rolled out with little advance notice.
A communication oversight at US Customs and Border Protection (CBP) delayed tariff-exempt processing for cargos qualifying under the “on-the-water” clause, exposing forwarders and brokers to confusion and liability.
Brokers and forwarders increasingly found themselves paying duties on behalf of importers using Automated Clearinghouse or credit terms — if the importer defaulted, the broker would be left holding the bill. And, as more shippers turned to expert brokers given the uncertain landscape, this pushed fees up and caused some smaller brokers to struggle with volume and margin.
Finally, with many importers frontloading shipments ahead of tariffs, they created a surge of work for forwarders but also risk of warehouse congestion, mistimed arrivals and inefficient inventory build-up.
Overall, the combination of elevated duties, rapid regulatory change and increased workload forced customs brokers and freight forwarders to invest in compliance teams, technology upgrades and tighter commercial terms — all while operating under heightened risk and margin pressure.
The outlook for 2026 is of great uncertainty. Forecasting has become impossible for cargo owners, which in turn affects customs broker and freight forwarder. New business development in global trade has a higher probability of being paused as importers and exporters pivot to alternative sourcing.
Regardless of the circumstances, the logistics communities’ resolve remains unwavering, and we continue to forge ahead and meet these challenges.