Now, another surge in imports appears to be building as firms race to bring in goods ahead of the holiday season and a possible return to steeper duties once the pause expires.
“The uncertainty of the tariff policy may be a heavier burden on decision makers than the weight of the tariffs established thus far,” said Peter Kolaczynski, Director at CommercialEdge.
In response to the ongoing trade policy turbulence, more firms are exploring bonded warehouses—facilities where goods can be stored without paying tariffs until they are released. Though conversions are often costly and bureaucratic, they allow businesses to delay duty payments and hedge against future tariff fluctuations.
Reuters reported increasing interest in converting conventional warehouse space to bonded facilities as a way to manage supply chains more strategically.
Longer term, companies may opt to shift production from China to countries with lower tariff exposure, including Vietnam, India, and Mexico. While reshoring to the US remains a possibility, the 50% tariff on steel and aluminum continues to present a major headwind for domestic manufacturing expansion.