The impact of tariffs, whether they materialize or not, is irrelevant—they’ve already had their effects.
While many await anxiously for the latest news on tariffs between the US and its major trading partners, others simply see the writing on the wall, believing the economic damage has already been done. Despite temporary pauses, supply chain experts are witnessing economic impacts well before consumers see price changes at checkout.
To understand the current state of supply chains amid tariff uncertainty, we spoke with Danny Bloem, Consultancy Manager with Slimstock.
Tariff impact reality: “The impact of tariffs, whether they materialize or not, is irrelevant—they’ve already had their effects,” Bloem explains. “The threat poses a huge risk to many industries, reducing profitability and stunting economic growth. On a macro level, it’s already affecting costs in terms of opportunities for individual companies.”
Inventory pressures: The threat of tariffs has driven up costs for companies carrying inventory. “Businesses have been stocking up for a while now, preemptively mitigating potential tariff impacts,” Bloem notes. “We’re seeing increased costs from excess inventory that technically isn’t needed yet.”
Mathematical predictions: Slimstock specializes in the mathematical aspects of supply chain management, focusing on inventory requirements based on supply chain configurations. While the company helps clients estimate optimal inventory levels, Bloem emphasizes that “tariffs immensely change that equation.”
“We’ve seen clients buying, storing, and shipping more inventory into the US for months already,” Bloem explains. “Since Trump’s election, everyone’s been nervous about getting products into the States. This behavior started last November.”
The impact of tariffs, whether they materialize or not, is irrelevant—they’ve already had their effects. The threat poses a huge risk to many industries, reducing profitability and stunting economic growth. On a macro level, it’s already affecting costs in terms of opportunities for individual companies.
Strategic dilemma: Businesses face a tough choice: hedge bets by stockpiling inventory or wait and potentially pay higher costs when tariffs come into effect.
“If tariffs do materialize, stocking up was probably wise—you’ll have an edge over competitors who didn’t buy at lower prices,” Bloem says. “If you didn’t buy more, you’ve avoided interest and storage costs. There’s both risk and opportunity, but ultimately, everyone’s worse off than if there had been no tariff threats at all.”
AI solutions: “AI and statistical analysis help companies assess impact and create scenarios,” Bloem adds. “We can estimate outcomes and develop contingencies, such as products becoming less cost-effective when made without raw materials from tariff-affected countries.”
Lasting impact: Even without implementation, tariff threats have already damaged businesses and consumers. “Even removing tariffs from the equation, products will be more expensive due to unnecessary inventory stockpiling,” Bloem concludes. “Interest rates, though slightly lower now, aren’t at their lowest. Consumers will face higher costs whether tariffs materialize or not.”
