Companies mull stockpiling as trade war turns tricky

Stockpiling
is the reflex response by firms to the imposition of
tariffs
, but with the rapidly-changing position of the
Trump administration
, companies are finding that it isn't so straightforward this time around.
Whether it's the luxury, electronics or pharmaceutical sectors, Trump's unpredictability complicates the calculations of firms. Some companies didn't wait for the April 2 announcement of massive "reciprocal" trade tariffs: they had already begun shipping more of their goods to the US.
In the end, Trump backed down quickly on the "reciprocal" tariffs, pausing them for 90 days except for China.
That still left the global 10 per cent tariff in place, as well as the 25 per cent tariffs on European steel, aluminium and cars.
French cosmetics firm Clarins didn't hesitate and stepped up shipments to the US at the beginning of the year. With all of its products made in France, Clarins had few other options to mitigate the tariffs.
Even if they don't all acknowledge it so openly, firms in many different sectors are stockpiling their products in the US.
In March, exports of Swiss watches to the US jumped nearly 14 per cent compared to the same month last year. More striking is Ireland, which plays host to a number of global pharmaceutical firms. Its exports to the US jumped 210 per cent in February to nearly USD 14.8 billion.
Lufthansa Cargo said it has seen in recent weeks "an increase in demand for shipments to the United States". The
trade war
"has incited companies to accelerate certain stages in their supply chains", it told AFP.
The phenomenon also concerns US-made goods. Nikkei reported recently that Chinese tech firms were snapping up billions of dollars of AI chips made by Nvidia in anticipation of US imposing
export curbs
.
Stockpiling is not a solution, however, said analysts. Matt Jochim, a partner at consulting firm McKinsey called stockpiling "a very short-term opportunistic" move.
He said the practice has limits as tariffs are constantly changing and it isn't always practicable. "In a lot of the electronics space... because the technology changes so quickly, you don't want to get stuck with inventory of chipsets or devices that are the prior version," he said.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Hindustan Times

30 minutes ago

• Hindustan Times

Trump issues worldwide travel alert for Americans amid Israel-Iran conflict: Here are dos and don'ts

The Donald Trump-led State Department on Sunday posted a 'Worldwide Caution' on its travel alert page, citing the conflict between Israel and Iran. This comes a day after the US struck three Iranian nuclear bases. Trump stated that he is not ruling out a regime change in Iran. Donald Trump issued a travel alert for Americans worldwide(AP) In its latest alert, the State Department said: 'The conflict between Israel and Iran has resulted in disruptions to travel and periodic closure of airspace across the Middle East.' Officials further warned Americans about potential demonstrations against US citizens and interests. 'The Department of State advises U.S. citizens worldwide to exercise increased caution. Please read carefully our Travel Advisory, country information, and any recent security alerts when planning travel,' the press release read. Read More: How China, Pak, others reacted to US airstrikes on Iran: 'Catastrophic consequences' Meanwhile, the department also posted an update on Israel and the West Bank, saying the embassy in Jerusalem and Branch Office Tel Aviv will not be open to provide emergency US passport services on Monday, June 23. 'US citizens seeking to depart Israel or the West Bank should take the first available option, even if it is not your first choice of destination. Ben Gurion Airport remains closed, and there are still no regularly scheduled commercial or charter flights operating from there." Dos for Americans Abroad Monitor Local Conditions: Check country-specific travel advisories on for real-time updates on security risks. Enroll in the Smart Traveler Enrollment Program (STEP) at to receive alerts and facilitate emergency contact. Maintain a Personal Safety Plan: Prepare for unexpected crises by identifying safe locations, keeping emergency contacts updated, and ensuring your phone is charged, per the US Embassy in Saudi Arabia's security alert. Consider Evacuation Options: In Israel, contact the US Embassy for evacuation flights or cruise ships, as announced by Ambassador Mike Huckabee. Read More: Every US citizen a 'target': Iran after US strikes on Isfahan, Natanz and Fordow nuclear sites Don'ts for Americans Abroad Do Not Travel to High-Risk Areas: Avoid travel to Israel, Iraq, or Iran due to armed conflict, terrorism, and civil unrest. The State Department explicitly warns against travel to Iran, advising those present to shelter in place. Avoid Large Gatherings: Steer clear of protests or crowds, which may target US citizens or interests, especially in the Middle East. Do Not Ignore Airspace Closures: Refrain from planning air travel through regions with closed airspace, such as Israel or Iran, where commercial flights are limited.

Hindustan Times

35 minutes ago

• Hindustan Times

Soccer-From fallen giants to giant-killers: Botafogo's remarkable revival

By Fernando Kallas HT Image June 22 - Once Brazilian football royalty, Botafogo had languished for decades as a debt-ridden sleeping giant before they toppled Paris St Germain at the Club World Cup to cap a resurrection tale three years in the making. When American entrepreneur John Textor acquired the club in 2022, fresh from their promotion back to Brazil's first division, he took on a training ground so decrepit that then-coach Luis Castro dismissed it as "good for parking cars," alongside crushing liabilities exceeding one billion reais . Botafogo were a storied but shattered institution. The club that once nurtured Brazilian greats - Garrincha, Zagallo, Jairzinho and Nilton Santos, architects of three World Cup triumphs - was drowning in debt, having endured the humiliation of relegation three times in just over a decade. On Thursday, they outplayed European champions Paris St Germain to win 1-0 in the Club World Cup's most eye-catching upset, propelling themselves to the top of the tournament's "group of death" and on the verge of the knockout stage. Their squad, assembled through shrewd bargain-hunting in football's forgotten corners, now faces Diego Simeone's Atletico Madrid in Los Angeles on Monday, sitting comfortably, knowing even a two-goal defeat would still secure their passage to the round of 16. The victory over PSG vindicated Textor's vision, outlined in a Reuters interview three years prior, of "beating the system" through astute scouting in under-explored talent pools. The architects of Thursday's victory exemplified this approach. Match-winner Igor Jesus arrived as a free agent after three anonymous years in the UAE and was transformed into a Brazil international. Argentine defender Alexander Barboza, who neutralised PSG's vaunted attack, was plucked from Paraguay's Club Libertad for nothing. Captain Marlon Freitas came from second-division Atletico Goianiense, while experienced European campaigners Alex Telles and Allan were revitalised after spells in Middle Eastern leagues. Gregore, Jefferson Savarino, John and Cuiabano were all signed for under two million euros each. "The goal is to be sustainably competitive every year," Botafogo CEO Thairo Arruda told Reuters. "With a top six payroll, we produce like a top three." The transformation extends far beyond the pitch. Revenues have soared from 140 million reais in 2022 to projected earnings exceeding 1.1 billion by 2025, while liabilities have been slashed by 40%. Textor's Eagle Football empire also encompasses stakes in Ligue 1's Olympique Lyonnais and Premier League Crystal Palace. Botafogo's renaissance - crowned by last year's domestic and continental double - has breathed new life into a club motto once heavy with self-pity: "There are things that only happen to Botafogo." After outclassing Europe's elite, those words now carry an altogether sweeter resonance. This article was generated from an automated news agency feed without modifications to text.

The Hindu

an hour ago

• The Hindu

U.S. President Trump says he's open to regime change in Iran

U.S. President Donald Trump suggested that could he see Iran rejecting its government leadership, after officials in his administration stressed that the White House was not seeking a regime change. Also read: Israel-Iran conflict updates 'It's not politically correct to use the term, 'Regime Change', but if the current Iranian regime is unable to make Iran great again, why wouldn't there be a regime change?' Mr. Trump posted on social media. 'MIGA!!!' The statement marked something of a reversal from Defence Secretary Pete Hegseth's Sunday (June 23, 2025) morning news conference when he said that regime change was not part of the mission in the aerial bombardment of three Iranian nuclear sites.