How Will Tariffs Effect Warehousing?
egough • April 10, 2025
tariffs effecting warehousing
Tariffs can have a pretty significant impact on warehousing operations, depending on how they're applied and what goods are affected. Here’s a breakdown of how tariffs tend to affect warehousing:
Inventory Management Shifts
- Stockpiling: If a tariff is announced but not immediately enacted, companies might
rush to import goods before the tariff takes effect. This leads to a
temporary surge in inventory, requiring more warehouse space.
- Just-in-case vs. Just-in-time: Businesses may shift from
just-in-time inventory (lean) to
just-in-case (buffer stock), increasing warehouse storage needs.
Demand and Throughput Changes
- Higher product costs due to tariffs can
reduce demand, which slows down the
turnover rate in warehouses.
- Lower turnover = more goods sitting longer = potentially higher carrying costs.
Supply Chain Rerouting
- Change
shipping routes
- Require
new warehouse locations
- Demand more
flexibility in warehouse operations
Cost Pressures
- Increased product costs from tariffs can lead to cost-cutting elsewhere, including in warehouse operations.
- Reduced staffing
- Investment in automation to increase efficiency
- Alternatively, companies may pass those costs to warehouse providers if 3PLs are used.
Global Trade Zones and Bonded Warehousing
- To defer or avoid tariffs, some companies use Foreign Trade Zones (FTZs) or bonded warehouses.
- Goods can be stored in these zones without immediately incurring tariffs until they enter the domestic market.
- This can increase demand for specialized warehousing.
Complexity in Operations
- Tariffs can complicate customs compliance and documentation, leading to:
- Longer dwell times
- Increased need for trained personnel
- More investment in warehouse management systems (WMS) that can handle customs and trade compliance data

MIDCOM has been helping companies with warehouse solutions since 1982. Talk to one of our Specialists about smartphone mobile devices, thermal barcode label printers, mobile barcode scanning devices, software or mobile workstations today. Call now (877) 948-2005.
Annual Protection Plans
Warehouse management is facing unprecedented challenges and opportunities.
Here’s how you can stay ahead the curve and prepare your warehouse for 2025.
Pallet tracking technology not only streamlines the logistics within a warehouse but
also offers numerous advantages that contribute to overall productivity and cost savings.
How are smart mobile devices changing warehouse operation? Smartphones have revolutionized warehouses.
10 line matrix printer maintenance rules to keep them operational. Line matrix printer maintenance that can increase up-time. Learn more
Optimize your inventory management control to enhance operational efficiency and meet evolving consumer demands. Learn how to master effective inventory management in 2024 and beyond.
Radio Frequency Identification (RFID) is set to become an integral part of our more
efficient and connected future world. Read on to learn how.
eCommerce fulfillment strategies are evolving at a rapid pace to keep up with consumer demands, technological advancements, and global challenges. Retailers are exploring innovative solutions to reduce costs, enhance efficiency, and improve customer experience. Let's delve into the eCommerce fulfillment trends that are set to dominate the industry in 2024.
Learn how to prepare your warehouse operations for peak season, from early planning to efficient returns management and other key strategies for success.
Here are four foolproof ways companies can rethink their future strategies to keep up with constant demand.
With the warehousing industry constantly changing and evolving, we can expect to see many technological advancements in the warehouses of the future
