The reason? Fears of steep bills related to U.S. tariffs, Reuters reported Monday (Oct. 27). Before talks between China and the U.S. curtailed the threat of 100% tariffs on Chinese imports starting Nov. 1, importers were preparing to absorb the massive levies.
In response, Reuters wrote, importers of products sold at the likes of Amazon, Target and Walmart decided to gamble on loading their balance sheets with goods that may take months to move, and pay more to store them.
These companies are also banking on consumer spending remaining steady in spring as lower-income Americans hold back and the overall economy remains uncertain.
“We are trying to front-load spring orders,” said Leslie Stiba, chief executive of stroller-maker Austlen Baby Co. “We brought in as much as we could manage.”
She told Reuters she placed orders for 20% to 25% more strollers for spring 2026, her busiest season, compared to last year. In all, she is holding 50% more inventory than before the beginning of the trade war, and has delayed hiring due to the new expenses.
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Such front-loading, the report added, has been the norm for months as businesses scrambled to respond to the White House’s ever-changing tariffs. Importers bulked up products from China during the six-month tariffs armistice between the two countries, leading to a surge in shipping rates and port activity.
Writing about the tariff situation last week, PYMNTS noted that the “fact that major corporates can now plan around tariff exposures represents a potential form of stabilization.”
Nike, for example, reported a revenue beat in its most recent fiscal quarter despite raising its projected tariff impact to $1.5 billion from $1 billion because the company makes most of its shoes in Vietnam, which has no trade agreement with the U.S.
Also last week, PYMNTS looked at the ongoing impact of tariffs on a range of companies, including the way how resourceful firms are adapting to volatile conditions ahead of the holiday season.
PYMNTS Intelligence data showed that companies reporting strong performance metrics are managing uncertainty more effectively.
“These firms invest earlier in scenario planning, adjust cash flow forecasts monthly instead of quarterly, and diversify their logistics providers,” PYMNTS added. “That agility helps prevent small supply shocks from becoming existential crises.”
