The on-again, off-again tariff policies of 2025 are just the latest round in a never-ending game of global supply chain whack-a-mole. While long-term resilience remains a critical objective, companies are leaning on a set of short-term tactics to navigate disruptions—from labor disputes and geopolitical tensions to infrastructure failures, climate events and trade policy shifts. Each tactic offers potential upside, but all come with trade-offs that businesses must carefully weigh.
Tactic #1: Front-loading
Front-loading refers to pulling freight forward in anticipation of disruptive events. Companies stockpile goods—especially containerized imports—when they expect a future supply shock. This tactic was well-documented in 2024, when the first ILA strike on the East and Gulf Coasts in 50 years was anticipated for months. Although the strike ultimately lasted just three days, shippers rushed to bring in cargo ahead of the October 1 deadline. From July through September, the top nine U.S. ports handled 6.6 million loaded import TEUs1, making it the busiest quarter for containerized imports on record. After such deadlines pass, the pendulum usually swings back.
The upside
Pulling freight forward shores up supply and reduces the risk of inventory shortages during a disruptive event. In the case of tariffs, it can also mean bringing in goods before higher rates take effect.
The trade-offs
This tactic only works if a company has—or can secure—excess storage capacity. There’s also the risk of overstocking and holding too much inventory for too long, including goods that may become obsolete. And when many companies front-load at once, shipping rates can spike. Transpacific container rates, for example, rose 158% during the first nine months of 20242 as shippers rushed to move goods ahead of the anticipated ILA strike.
1Local port authorities 2Drewry Supply Chain Advisors
Tactic #2: Bonded warehouses and FTZs
Amid the trade policy uncertainty of 2025, more companies are turning to bonded warehouses and Foreign-Trade Zones (FTZs) to hedge against both potential tariff increases and decreases. Bonded warehouses allow companies to defer duties until goods leave the facility, but they permit only minimal processing and are best suited for shorter-term storage. Using a bonded warehouse requires an application with U.S. Customs and Border Protection. FTZs, by contrast, are a longer-term solution. There are 197 active FTZs in the U.S., primarily located near ports and airports. Unlike bonded warehouses, FTZs have no time limits and allow for manufacturing and other value-added processes.
The upside
If tariffs are expected to decline in the near future, bonded warehouses can be a smart strategy for importers of finished goods. For manufacturers, FTZs offer greater flexibility. Companies operating in FTZs can avoid tariffs on raw materials and choose to apply either the tariff rate in effect at the time of entry at the time of withdrawal—an advantage when navigating uncertain or sustained high tariffs.
The trade-offs
Both options come with costs—not just fees, but also the time and effort required to comply with government oversight. Capacity is limited as well, making access competitive. In the case of bonded warehouses, the strategy is ultimately a bet that tariff rates will decline—a bet that carries inherent risk and may not pay off.
Tactic #3: Using third-party logistics (3PLs)
Third-party logistics providers (3PLs) offer warehousing, transportation and fulfillment services that can scale quickly in either direction. Amid five years of exceptional supply chain volatility, more companies have shifted toward outsourced logistics. This trend is reflected in industrial leasing activity: 3PLs have increased their share of U.S. leasing activity from 25.2% in 2020 to 38.3% in 2025, as retail, e-commerce and consumer goods companies pull back from leasing space directly.
The upside
Using a 3PL allows companies to stay nimble— avoiding major capital commitments while still meeting seasonal or unpredictable demand. It’s a fast way to add capacity and tap into logistics expertise without signing a long-term warehouse lease.
The trade-offs
That flexibility comes at a premium. Short-term or overflow 3PL arrangements are typically more expensive than traditional warehousing, and costs can rise quickly in tight markets. Companies may also face reduced control and visibility, and overreliance can weaken negotiating power and long-term supply chain resilience.
Tactic #4: Shifting sourcing and production
Global supply chains have undergone profound shifts in recent years. Geopolitical tensions, technological change and evolving consumer expectations are prompting companies to rethink where and how they source materials and produce goods. As a result, the global manufacturing footprint is being redefined, with a growing push toward more resilient, agile and sustainable operations. Major brands across sectors—including tech, consumer goods and apparel—are moving sourcing and production out of China, with India, Vietnam, Mexico and Malaysia emerging as key alternatives. Companies leading this shift include Apple, Samsung, Hasbro, HP, Dell, Panasonic, Stanley Black & Decker, Adidas and Nike.
The upside
Shifting production closer to end markets— through investments in domestic manufacturing or nearshoring to places like Mexico—reduces dependency on Asia and shortens lead times. Diversifying suppliers improves flexibility, enhances disaster recovery options and strengthens negotiating power. These strategies can lower inventory costs, boost supply chain performance and, in many cases, qualify for government incentives.
The trade-offs
Decentralizing production can erode economies of scale, raise costs and introduce quality control challenges that may harm brand integrity. Managing multiple sites often requires added headcount, slows operations during audits or corrections and increases exposure to inconsistent regulations.
Tactic #5: Rerouting to lower-duty ports
Some companies have tried to bypass U.S. tariffs by routing goods through a third country—a tactic known as transshipment. While legal when substantial value is added in the third country, it often violates customs laws if done solely to avoid tariffs. Common methods include relabeling, repackaging or falsely declaring the third country as the product’s origin. One high-profile case involved Chinese plywood routed through Vietnam, where U.S. investigators found companies relabeling goods to evade tariffs—prompting the Commerce Department in 2023 to extend duties to Vietnamese shipments traced back to Chinese origin. To remain compliant, a product must undergo substantial transformation in the intermediary country.
The upside
Transshipment offers a way to avoid tariffs without changing suppliers or building new facilities. Companies can continue producing in lower-cost countries like China while routing goods through places like Vietnam or Mexico to reduce duties. This approach helps control costs and preserves existing supply relationships.
The trade-offs
Rerouting goods through lower-duty countries to avoid U.S. tariffs is becoming increasingly risky. Many passthrough nations are now under heightened scrutiny, and U.S. Customs is ramping up audits, inspections and stricter enforcement of origin rules. Violations can trigger penalties under the False Claims Act or Section 301 and 232 tariffs. Hong Kong no longer holds special trade status, and USMCA rules are being enforced more rigorously. Companies face significant legal and financial exposure and should consult trade experts to develop compliant strategies.
Tactic #6: Reclassifying and redesigning products
One long-standing tactic is known as “tariff engineering”—modifying a product just enough to shift it into a lower-duty classification. A classic example is Converse All-Stars, which include a felt lining on the sole to qualify as slippers rather than shoes, thereby avoiding a tariff that has run three to five times higher.
The upside
The clear upside of tariff engineering is reduced import duties, which can significantly lower costs over time. It’s especially effective when thoughtful design tweaks can be made without compromising product performance, branding or customer experience.
The trade-offs
The downside is that design changes may compromise product quality or performance, potentially damaging brand reputation. They may also add manufacturing complexity and cost. Additionally, tariff classifications and rates can shift, and missteps in documentation or compliance can carry legal and financial consequences.
Tactic #7: Investing in automation and tech
To hedge against ongoing supply chain risks and disruptions, many companies are increasing investments in automation and efficiency-enhancing technologies. These tools provide flexible, predictable capacity; improve space utilization; reduce inventory; and enhance process efficiency. They also create opportunities to elevate employee roles by eliminating repetitive or unsafe tasks. By boosting operational effectiveness, automation helps build resilience and flexibility into supply chains—preparing companies for shifting demand, supply delays, business continuity challenges and even climate or geopolitical disruptions.
The upside
In response to tariff-driven inventory surges, companies are turning to automation and densification technologies to ease pressure on space-constrained facilities. Solutions such as AutoStore, automated storage and retrieval systems (AS/RS) and other goods-to-picker technologies can reduce storage footprints by 70–75%, reduce reliance on labor, accelerate fulfillment and improve inventory management, security and flexibility. Investments in warehouse management systems (WMS), warehouse control systems (WCS) and labor-assist technologies further enhance operational resilience, enabling better planning, continuity and capacity under unpredictable conditions. Many software platforms also offer tools for modeling and mitigating supply chain risks, helping firms remain agile amid continued volatility.
The trade-offs
Automation can require moderate to significant upfront investment, and not every solution is the right fit. Companies must carefully vet technologies for cost justification, reliability and long-term value to avoid wasted spend and ensure they truly strengthen supply chain resilience.
Each of these tactics offers a way to navigate today’s volatile trade environment, but none is a silver bullet. The key is to understand the trade-offs—balancing cost, risk and agility—to build a supply chain that can adapt as conditions evolve.