Because of Donald Trump: Companies are stockpiling goods in the US for fear of a trade war

Because of Donald Trump: Companies are stockpiling goods in the US for fear of a trade war gom/bos/news.de/stg • 3 hrs. • With his announced tariffs, Donald Trump caused uncertainty among companies worldwide. Donald Trump is causing uncertainty with his tariff policy Companies are stockpiling more goods in the US as a result Exports to the United States have increased in various sectors in recent months Companies around the world are responding to Donald Trump's erratic trade policy by increasing shipments of goods to the US. Despite the recently announced 90-day pause in the new tariffs announced for many countries, the situation remains tense. According to recent reports, this has prompted companies from various sectors to preemptively build up their US inventories. Donald Trump is stoking fears of a trade war: Companies are stockpiling goods in the US As the portal "Raw Story" reports, the French cosmetics giant Clarins has already taken action. US shipments ramped up early in the year. "We built up three months' worth of inventory, which equates to $2 million worth of goods," explains Lionel Uzan, head of US operations at Clarins. Other industries are also following this trend. Exports of Swiss watches to the US rose by almost 14 percent in March compared to the same month last year. The trend is even more evident in Ireland, where exports to the US grew by 210 percent to almost €13 billion ($14.8 billion) in February, with 90 percent of that being pharmaceutical products and chemical ingredients. The French garden furniture manufacturer Fermob, which sells around 10 percent of its goods in the US, also aligned itself early on with Trump's approach. Plans were adjusted shortly after the US election – and production ramped up at the beginning of the year. "We shipped around 30 percent of our additional inventory to the US," said CEO Baptiste Reybier, according to "Raw Story." More goods exports to the US in recent months due to Trump's tariff policy Increased warehousing brings benefits for transport companies. Lufthansa Cargo reports "increased demand for deliveries to the US" in recent weeks. The trade conflict "has prompted companies to accelerate certain phases in their supply chains," the company told the AFP news agency. A similar trend has been observed in the delivery of cars from the EU to the US. Technology products are also affected – according to the Japanese newspaper Nikkei, Chinese technology companies are buying billions of dollars worth of AI chips from US manufacturer Nvidia to anticipate possible export restrictions from Washington. Companies' action against Trump poses risks Analysts, however, are critical of the inventory-building strategy. Matt Jochim, partner at the consulting firm McKinsey, describes the approach as a "very short-term opportunistic" approach. This strategy is particularly problematic in the electronics industry, as technology changes rapidly and companies don't want to be left with outdated products. Fermob CEO Baptiste Reybier emphasizes the need for a balanced approach: "Otherwise, you replace one risk with another. You have to finance inventory, and there's also the risk of not having delivered the right product."