US firms race to get ahead of Trump tariffs

New York [US], December 4: When handbag designer Sherrill Mosee learned that roughly 2,700 purses and backpacks she had ordered from her Chinese manufacturing partner would not make it onto one ship this autumn, she was initially content to wait.
Then Donald Trump was re-elected as US president.
Those efforts gained urgency this week as Trump said he would take action on his first day in office. He aimed the measures - a kind of border tax - at China, Mexico and Canada, America's top three trade partners.
Writing on social media, Trump said he planned to impose a 25% levy on goods from Canada and Mexico and "an additional 10% tariff, above any additional tariffs" on imports from China.
The post followed his campaign pledge to impose across-the-board tariffs of at least 10% on all imports coming into the US, and 60% or more on goods from China - many of which already face steep duties left over from actions taken during his first term as president.
Some experts have said that Trump's policies may ultimately prove less aggressive than promised, and that his statements should be understood as opening salvos in bigger negotiations of migration and drug policy.
But regardless of how policy shakes out, the threats are already having economic consequences, as firms like MinkeeBlue start to stockpile, shift supply chains, re-work contracts and take other steps to guard against the possible impact.
Chris Caton, managing director for global strategy and analytics at warehouse giant Prologis, said his firm had already seen an uptick in activity "on the margin" as businesses respond to possible tariffs by looking for space to stock up.
In the days after the election, footwear giant Steve Madden told investors that it was moving forward with plans to shift manufacturing outside of China, with the aim of cutting its imports from the country in half over the next year.
Tool and hardware maker Stanley Black & Decker also said it had initiated conversations with its customers about price hikes tied to the tariffs.
Executives at retail giants such as Walmart have discussed similar plans.
Even if Trump's policies remain just talk, Ms Edelberg said the public could see higher prices, as well as possible shortages of some items, as hoarding left some firms scrambling.
Just the simple fact that firms were unsure about what was going to happen was also likely to reduce economic growth in the months ahead, she added.
Source: Fijian Broadcasting Corporation