The global shipping industry isn’t out of rough waters just yet. After the Supreme Court of the United States struck down President Donald Trump’s tariffs under IEEPA on February 20, Trump announced new levies under Section 122 of the Trade Act of 1974.
In a Landmark decision, the Supreme Court ruled against Trump’s tariffs imposed under the International Emergency Powers Act (IEEPA).
As international shipping continues to shift, the industry can soon see Canada leading the BRICS economy. BRICS is a group of emerging economies comprising ten countries, including Brazil, China, Russia, India, and others. Over the last few years, the BRICS market has expanded, now accounting for 40% of the global economy. Although Canada is not a part of BRICS, Canada’s largest trading partners are in the group, including China and India. As Canada continues to expand its trade, the concurrent growth of BRICS countries may significantly impact shipping.
While not being a member of BRICS, Canada’s primary exports are to countries in the bloc. A popular commodity that Canada exports is wheat, and it is the world’s third-largest shipper. With Canada as a major trader in BRICS, the country could soon account for 44% of the world’s grain consumption. Canadian exporters also benefit from fast-growing consumer markets in energy, critical minerals, and agriculture. The BRICS push for reduced reliance on the US dollar and greater economic cooperation will also lead to growth opportunities.
The reliance on Canadian exports may continue to rise as BRICS reshapes global trade. US tariffs on Canadian imports could further prompt Canadian shippers to diversify their supply chains to BRICS countries. Coincidentally, imports into the US from Canada may also increase, as both countries remain significant trade partners. Maintaining trade relations with the US while engaging pragmatically with BRICS economies will expand Canada’s global presence.
As Canada becomes a major player in global trade, imports and exports between the US and Canada could increase. Despite the opportunities for international shipping, shippers may face risks when starting. An ideal way to prepare is by coordinating with a 3PL (Third-Party Logistics) Provider. 3PLs provide a range of supply chain logistics services, including international and domestic shipping, customs clearance, warehousing, and more. Reach A1 Worldwide Logistics at info@a1wwl.com or 305-425-9752 to learn about our solutions for ensuring your shipment’s success.
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