The Hidden Logistics Costs of New Tariffs — and What You Can Do About Them

The ripple effects of new tariffs imposed by the Trump administration go well beyond an increase in direct material costs. The mere threat of increasing trade taxes is quietly transforming the entire logistics landscape, driving up demand — and prices — for warehouse space.

Late in 2024, the effects of not-yet-enacted tariffs were already permeating the U.S. economy. According to a survey by The Conference Board, 85% of executives from large companies were planning significant supply chain changes, up 15% from the previous year.

The National Retail Federation reported a 20% increase in year-over-year traffic in December at U.S. container ports, as importers rushed to avoid tariffs and the potential dockworker strike (which did not materialize). This preemptive importing frenzy is poised to create bottlenecks at ports, intensify pressure on transportation networks, and drive an unprecedented surge in demand for warehouse space. Businesses will likely scramble to secure short-term storage solutions to manage their overflowing inventory (as happened in 2019), all while contending with the looming uncertainty of potential trade disruptions and rising operational expenses.

Spikes in demand for warehouse space can create a logistics challenge that ex…