Your phone rings at 2 a.m. Another AOG situation needs parts from Toronto. Yesterday, that shipment cost X. Today? Who knows.
North American tariffs have turned your budgets into works of fiction, and your contingency plans need contingency plans.
Supply chain managers like you used to worry about weather delays and carrier capacity. Now you’re tracking diplomatic spats between neighbors that share the world’s longest undefended border. Canada faces 35% tariffs on most goods. Mexico sits at 25% until October 29. Metals (steel, aluminum) and semifinished copper now carry 50% Section 232 rates.
And it’s anyone’s guess if and when all of the above will change, or if this is really the new normal (beyond the next three to four years).
First, let’s get specific about these North American tariffs.
Canada took the biggest hit on August 1. The IEEPA border tariff jumped to 35% on most Canadian goods. Energy and potash caught a break at 10%, but everything else got expensive overnight.
Mexico dodged a bullet on July 31. A last-minute deal locked its rate at 25% for 90 days instead of the threatened 30%. That extension expires on October 29, and negotiations could go either way.
Metals got hammered across the board. Section 232 rates hit 50% for steel and aluminum globally. Copper products now carry 50% tariffs based on copper content — all effective August 1.
One silver lining, though: April’s executive order prevents tariff stacking on specific categories. Your brokers better understand these non-stacking rules, or you’ll overpay on auto parts and other dual-category items.
Here’s where your documentation saves or costs you thousands on North American tariffs.
USMCA-qualifying goods dodge the IEEPA border tariffs entirely, but proving qualification requires flawless paperwork. Filed duty-paid without proper certificates? You can still claim refunds post-importation, though you’ll need every origin document perfectly aligned.
Auto parts get even trickier. While Section 232 tariffs exclude USMCA-qualifying components and non-stacking rules prevent double hits, your broker must calculate non-U.S. content precisely, or you’ll overpay on every shipment.
Metals throw another wrench into the mix. Those 50% rates on steel, aluminum, and copper products operate under separate national security rules where USMCA won’t automatically protect you. Suppliers must document the country of melt and pour for steel, plus exact copper percentages for content calculations.
One missing form on your urgent AOG parts means eating a 35% price increase you can’t pass along.
Those North American tariffs hitting Mexico? They also directly impact your emergency logistics network.
Mexico’s heavy truck exports crashed 51.6% year over year in July, with production down 55.1%. Since 95% of Mexico’s commercial vehicles head north, you’ve lost half your cross-border capacity overnight. Not to mention that trucks now cost $35,000 more, pricing out smaller carriers while large fleets pass those costs straight to you.
Oh, but the math gets uglier. Mexico handles 40% of land freight into the U.S., primarily through Laredo. Those missing trucks were your backbone for heavy, time-sensitive loads. Carriers now warehouse more inventory near borders to dodge tariff volatility, but that ties up capital and trucks while your grounded aircraft waits. Cross-border runs take longer, cost more, and require perfect paperwork or face rejection.
Your AOG recovery just went from hours to days. Not like the truck driver shortage helps matters either.
Finding a truck was hard enough. Now let’s talk about what happens when your parts hit customs.
Most aircraft engines and parts enter the U.S. duty-free thanks to international trade agreements like HTS 841 and HTS 8803. However, Chinese aerospace components still face Section 301 tariffs, though some exclusions run through November.
Canadian and Mexican parts avoid border tariffs under USMCA, and you can even claim refunds on previous shipments, though the latest North American tariffs add layers of complexity.
Ultimately, here’s what matters for your emergency operations: Your AOG playbook needs updating. Get vendors to classify parts by tariff code and declare material content upfront. For repair returns, consider temporary import procedures to reduce upfront costs. And prepare like your business depends on it.
After all, when you’re already paying premium freight for grounded aircraft, every tariff percentage point hits your budget. Know your codes, verify your exclusions, and plan your import strategy before the next AOG situation.
So while there are ways to work around those duty calculations, they also expose a bigger problem: Your broker’s credit line can’t handle these North American tariffs.
CBP requires continuous bonds covering at least 10% of your last 12 months’ duties, taxes, and fees. Tariff spikes trigger mid-month bond insufficiency notices and emergency collateral calls. Your broker suddenly needs cash they don’t have, right when you need urgent clearance.
Some relief exists. Periodic Monthly Statement (PMS) consolidation lets you pay duties on the 15th business day of the following month, buying up to 45 days’ float. Trade financiers expanded duty financing pools specifically for tariff bills, but demand exceeds supply.
Your move? Recalculate duty forecasts immediately. Raise bond limits before hitting ceilings. Split broker credit between linehaul and duties so one doesn’t choke the other. Otherwise, your next AOG sits on the tarmac while accounting digs for cash like buried treasure.
So, needless to say, you can’t control trade policy, but you can outsmart it. Here’s how:
CTPAT and FAST lanes cut your border dwell time from hours to minutes. But speed means nothing if your paperwork fails. Your ISF/ACE entries must nail the non-stacking rules perfectly, or you’ll overpay now and beg for refunds later. Keep USMCA claims locked and loaded with every supporting document CBP might want. No special forms required, but your data better match their content rules exactly. The difference between a 30-minute clearance and a six-hour nightmare? Usually, it’s one wrong checkbox.
Stop treating tariff exposure like tomorrow’s problem. Calculate your risk right now: HTS code times origin times applicable program (USMCA, Section 232, 301, IEEPA). Do you have suppliers using copper, steel, or aluminum? Flag them today, not when rates jump again. Lock down origin statements and CAA eligibility for every engine and part you might need. China-origin components require special handling for Section 301 exclusions under 9903.88.69/70, valid through November 29. Build this database once, update it constantly, and sleep better knowing exactly what each shipment will cost.
Your continuous bond covers 10% of last year’s duties, but what about next month’s spike? Raise those limits now, before CBP sends insufficiency notices mid-crisis. PMS enrollment buys you up to 45 days’ payment float, vital breathing room when cash gets tight. Line up duty financing while banks still have appetite, because the October 29 Mexico rate review could tighten everything. Watch those Section 232 aircraft engine investigations too. The companies surviving these tariffs planned their cash flow six months ago.
Every core and rotable heading back for repair represents trapped cash unless you play it smart. TIB entries under 9813 need bonds at 110% of estimated duties, but they beat paying full freight. The 9801 provision works perfectly for U.S. and foreign goods returned, especially those empty unit backhauls eating warehouse space. You get three years to export under TIB, plenty for most repair cycles. But if you route these shipments wrong, you’re financing unnecessary duties while your working capital evaporates.
Mexico’s heavy truck production crashed and vaporized half your cross-border options overnight. So, secure vetted expedited carriers and OBC couriers with proven cross-border credentials. Build relationships at secondary ports where lines stay shorter. Audit your brokers monthly to verify they’re applying E.O. 14289 non-stacking rules correctly, and document every refund you’re owed from improper billing. North American tariffs keep morphing faster than anyone can track, so your contingency network better run three layers deep.
Let’s be honest about where we are. North American tariffs turned your AOG playbook into toilet paper. Yesterday’s solutions don’t work when Canada hits you with 35%, Mexico’s trucks disappear, and your broker calls about maxed credit lines while planes sit burning $150,000 hourly. The smart ones already moved and planned ahead months ago. Everyone else keeps paying tuition at the school of hard knocks, discovering these lessons one expensive emergency at a time.
That’s exactly why we built Carrier 911 the way we did. We handle your customs paperwork and pay duties upfront because waiting at borders is for amateurs. Our team quotes you in 15 minutes and picks up in 60, because your AOG doesn’t care about business hours. We run expedited ground coast-to-coast in 48 hours — usually faster and definitely cheaper than that $20,000 charter quote sitting on your desk. You track everything live from first-mile through final-mile delivery, get photos at every stop, and POD instantly on arrival. We know every shortcut, every broker trick, every way to turn tariff chaos into a solved problem.
See a Carrier911 demo today and let us show you how we keep planes flying while everyone else explains delays.
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