Canada's tariffs land, but the paying freight is still at home

Trade policy owned the week — Washington's 50% tariffs on a wide range of Canadian goods took effect Saturday — but the freight that pays the mortgage is still domestic, and it is still moving. Here is what changed and where the money is.

**The cheap miles are still the Mexican crossings.** In the week to 18 August, produce out of the South Texas border crossings paid the least of any lane we track: $2.06 a mile running to Los Angeles, dead last of 73 lanes, against a national produce-reefer average of $4.14. If you are thinking about deadheading south for a cross-border load, the math rarely works right now — the paying reefer freight is the short East Coast hauls. [Reefer rates and lanes](https://news.open-trucker.com/trends/reefer-national-rpm/).

**Diesel's cheapest tank is on the Gulf — but it is climbing fastest there too.** The Gulf Coast pumped $5.237 a gallon last week against a $5.454 national average and California's $6.785, yet it is up 56.8% on the year, the steepest annual rise of any region. Cheap by the map, not by the calendar. [Regional diesel](https://news.open-trucker.com/trends/diesel-us/).

**Canada's 50% tariffs are now live.** After negotiations collapsed at the last hour, the U.S. duties on scores of Canadian imports took effect Saturday, according to The Trucker's AP report — carriers on northern-border lanes should expect volume and routing to shift. [The Trucker](https://www.thetrucker.com/trucking-news/the-nation/what-to-know-about-trumps-50-tariffs-on-canadian-goods-that-just-went-into-effect).

**Shippers are pricing intermodal again.** FreightWaves reports intermodal savings have jumped to their highest level in some time as truckload spot and contract rates level off — worth watching if you renew long-haul contracts this fall. [FreightWaves](https://www.freightwaves.com/news/intermodal-savings-surge-up-to-49-roi-for-shippers).

**Retail demand is holding up.** Transport Topics reports consumers are still spending where the price is right, and FreightWaves notes Walmart's e-commerce sales grew 24% last quarter on faster delivery — the freight is there for carriers positioned to move it. [Transport Topics](https://www.ttnews.com/articles/retail-earnings-price), [FreightWaves](https://www.freightwaves.com/news/walmart-fast-delivery-helps-fuel-24-growth-in-e-commerce-sales).