Throughout 2025, many US-based manufacturers and retailers faced significant challenges arising from tariff‑related cost increases on imported goods, particularly those sourced from China.
These developments prompted a broad set of responses aimed at containing inventory costs and reducing exposure to higher import charges.
Companies sought to limit the build‑up of stock, as inventories were affected by higher‑priced goods and by early ordering intended to stay ahead of shifting tariff deadlines.
Retailers record rising inventory values as tariffs increase costs
According to a report by GSCi, a logistics and supply chain data and analysis firm, several retailers reported clear increases in inventory valuations.
For example, PVH Corp, the owner of Calvin Klein and Tommy Hilfiger, stated that its inventory in Q3 2025 rose by 3% year on year, with tariffs contributing 2% of this change. It also indicated that the financial effect would intensify in the final quarter as more items were sold at elevated cost levels.
Clothing retailer Victoria’s Secret said it expected its inventory to be up by “mid‑teens” per cent compared with the previous year, linking this outcome both to tariff exposure and to its transition from air freight to ocean freight, which results in earlier ownership of goods within the cycle.
Similarly, global footwear company Crocs reported an 8% increase in inventory at the end of Q3, attributing this rise “almost entirely” on a dollar basis to tariff impacts.
Companies diversify sourcing to reduce tariff exposure
The report adds that many importers responded by widening their sourcing base.
Williams‑Sonoma, an American retailer of home products, had already initiated a plan to reduce production in China from 50% to 23% by 2025, shifting volumes to Vietnam, India, Malaysia and near‑shored upholstery.
Walmart’s investments in suppliers in India, as well as activity in Mexico and Chile, allowed it to limit inventory increases to 3% across the group.
Other home products retailers, such as Home Depot, increased near‑shoring to Mexico and adjusted sourcing origins to benefit from markets with favourable agreements with the US.
Some consumer goods companies were already manufacturing within the US or United States–Mexico–Canada Agreement (USMCA).
US-driven geopolitical actions reshape container flows and global trade patterns
Beyond corporate strategies, wider trade patterns shifted markedly.
The US trade war expanded beyond tariff policy. It included penalties on Chinese ships and discussions around control of the Panama Canal, although these measures were paused.
Container data for the first 11 months of 2025 showed North America representing 25% of global shipments, down from 27% in 2024.
Shipping Analyst Lars Jensen believes that these figures indicate that the disruptions primarily affected the US, while trade between other countries accelerated.
He adds that early 2026 statements suggested that US‑driven geopolitical developments might continue, alongside operational challenges linked to a possible reopening of the Red Sea and Suez routes.
