Last fall, a U.S.-based toy distributor placed a $100,000 order for a variety of stuffed animals from overseas suppliers. By the time the products arrived at a domestic port months later, newly implemented tariffs had taken effect—adding an unexpected $20,000 to the total cost.
The importer had explored every possible legal avenue to avoid the additional duties, from timing the shipments to questioning product classifications. Ultimately, the company had no choice but to absorb the extra cost, prompting serious concerns about long-term business viability.
Tariffs have become a volatile component of global trade policy, frequently shifting with little warning. One round of levies was announced, delayed, then reimposed—only to be suspended again weeks later. This unpredictability has made it nearly impossible for importers to plan effectively, often resulting in tens of thousands of dollars in unexpected fees.
In response, some businesses rushed to place advance orders and build up inventory before potential tariffs took effect. Others delayed shipments entirely, hoping for relief. Many are now raising retail prices to offset the additional burden.
Ports handling high volumes of international cargo, particularly those on the West Coast, have seen container activity spike—reaching levels not seen since the height of the pandemic. In Canada and Mexico, demand from U.S. buyers surged late last year but quickly fell off in early spring, highlighting the turbulence in cross-border trade.
For many companies, even minor delays—such as shipping bumps or paperwork issues—can mean the difference between duty-free clearance and a steep import tax. One business, for example, planned to ship its product in January, only to have the container rescheduled to February, resulting in nearly $23,000 in added tariffs.
Other importers reported shipments delayed by flat tires or misfiled documents, triggering significant penalties during brief windows when higher duties were in place. Logistics providers noted that such scenarios are becoming increasingly common—and costly.
As uncertainty grows, many companies are pressing pause on new orders until the trade environment stabilizes. Some logistics executives say cross-border trade volumes have dropped sharply in response to the new tariff regime, and activity hasn’t yet returned to previous levels.
One U.S.-based outdoor goods retailer, for example, faces an estimated $850,000 in unplanned tariff costs on upcoming shipments. With uncertainty around how certain product types will be classified, the company is preparing to pass along some of those costs to customers through price increases.
Even companies that manufacture their products domestically aren’t immune. One small business that imports raw materials from abroad, but produces finished goods in the U.S., chose to stockpile supplies in anticipation of new tariffs. While that move avoided immediate duties, it also tied up working capital—limiting the company’s ability to invest in other areas of growth.
For many small and mid-sized businesses, these sudden shifts in policy have created a chaotic environment. The need to plan around uncertain tariffs is diverting focus from innovation and expansion—and instead, forcing a short-term, reactive mindset that could affect long-term resilience.
