US importers are rushing to stockpile goods from China ahead of President-elect Donald Trump’s planned tariffs, which could revive a trade war between the world’s two largest economies. Chinese officials reported record December exports to the US, with cargoes at US seaports increasing 14.5%. The surge is attributed to concerns about escalating trade protectionism and companies’ efforts to front-run possible tariffs on consumer items.
Imports from China rose 15% in the fourth quarter, driven by a year-end rush to get goods into the US. Companies such as Helen of Troy Ltd and MSC Industrial Direct are building strategic inventories to reduce exposure to potential tariffs. The Trump administration’s plans to impose new tariffs could also impact imports from other countries, including Mexico and Canada.
Resilient US shoppers have fueled demand for imported goods, further complicating the analysis of the impact of the planned tariffs. However, some companies face working capital constraints due to the need to hold buffer stocks. As the inauguration approaches, businesses are waiting for clarity on the new tariff policies before making strategic decisions.
Source: https://www.reuters.com/markets/us/us-importers-rush-goods-china-trump-tariff-threat-looms-2025-01-15