News - Stockpiling is busy! U.S. importers are competing to resist Trump's tariffs

Before President Donald Trump’s planned new tariffs (which could reignite a trade war among the world’s economic superpowers), some companies stockpiled clothing, toys, furniture, and electronics, leading to strong import performance from China this year.
Trump took office on January 20, threatening to impose tariffs of 10% to 60% on Chinese goods. His first term primarily targeted Chinese components, and economists and trade experts predict that his next round of tariffs may apply to finished products.
Frederic Neumann, chief Asia economist at HSBC in Hong Kong, stated, “Due to importers wanting to preemptively address potential tariffs on consumer goods, there has been an increase in China’s exports of final products to the U.S.”
Chinese trade officials reported on Monday that exports surged to record levels in December.
Lu Daliang, a spokesperson for the General Administration of Customs, said at a press conference in Beijing that the significant rise partly reflects concerns about escalating trade protectionism.

According to trade data provider Descartes Systems Group, U.S. ports processed goods from China equivalent to 451,000 forty-foot containers in December, a year-on-year increase of 14.5%.
Descartes indicated that imports of bedding, plastic toys, machinery, and other products from China to the U.S. would grow by 15% compared to 2023.
Helen from Troy Ltd, a seller of OXO kitchen tools, Hydro Flask water bottles, and Vicks over-the-counter medicine, contributed to this growth. Executives mentioned during last week’s earnings call that the company has been building strategic inventories to mitigate tariff risks.
“With just a few days until the inauguration, I believe we will get more clarity once President Trump takes office,” said Troy CEO Noel Geoffroy regarding the new U.S. tariff policy.
MSC Industrial Direct, a distributor of tools, electrical, and plumbing supplies, sources about 10% of its inventory from China. Executives told investors last week that the company is stocking up on its most popular products that may face new tariff risks while also promoting U.S.-manufactured goods.
As companies closely monitor trade data, it’s challenging to determine the true impact of Trump’s tariff risks on overall import revenues.

Demand Elasticity
The analysis is further complicated by resilient American consumers who have been stimulating demand. Some importers have also introduced safety stock to guard against disruptions from Houthi attacks near the Suez Canal trade shortcut, as well as labor disputes at East Coast and Gulf Coast ports.
Meanwhile, Trump has threatened to impose tariffs on goods from many other countries, including North American neighbors Mexico and Canada.
Walmart, the largest user of container shipping, is one of the retailers that freight data analysts say has increased imports in recent months. Walmart did not comment on this assessment.
Data from S&P Global Market Intelligence shows significant growth in several categories of goods imported to the U.S. from all geographic sources in the fourth quarter.
Textiles and apparel rose by 20.7%; recreational products, mainly toys, increased by 15.4%; home goods grew by 13.4%; and household appliances and consumer electronics rose by 9.6% and 7.9%, respectively.
S&P reported that essential consumer categories like household and personal care, as well as food and beverages, increased by 14.2% and 12.5%, respectively.
Michael O’Shaughnessy, CEO of Element Electronics Corp., noted a surge in goods being shipped to the U.S. by year-end.
Element primarily imports components from China for its flat-screen TV assembly plant in Winnsboro, South Carolina, the last major TV production facility in the U.S. It also imports finished televisions. The company has built buffer stock as dockworkers threatened to shut down East Coast ports.
However, O’Shaughnessy stated that the inputs he is willing or able to bring in are limited.
“There’s no place to put everything,” he said. “Additionally, there are working capital constraints. It costs you money every day.”