
Trump's trade war pushes firms to consider stockpiling
Firms across various sectors started shipping products in the US amid trade uncertainties ahead of the 90-day tariff pause deadline. (AP pic)
PARIS : Stockpiling is the reflex response by firms to the imposition of tariffs, but with the rapidly-changing position of the Trump administration, companies are finding that it isn't so straightforward this time around.
Whether it's the luxury, electronics or pharmaceutical sectors, US President Donald Trump's unpredictability complicates the calculations of firms.
Some companies didn't wait for Trump's April 2 announcement of massive 'reciprocal' trade tariffs: they had already begun shipping more of their goods to the US.
In the end, Trump backed down quickly on the 'reciprocal' tariffs, pausing them for 90 days except for China.
That still left the global 10% tariff in place, as well as the 25% tariffs on European steel, aluminium and cars.
French cosmetics firm Clarins didn't hesitate and stepped up shipments to the US at the beginning of the year.
'We've built up three months of stocks, which represents US$2 million in goods,' said Lionel Uzan, the head of Clarins's US operations.
With all of its products made in France, Clarins had few other options to mitigate the tariffs.
Discreet stockpiling
Even if they don't all acknowledge it so openly, firms in many different sectors are stockpiling their products in the US.
In March, exports of Swiss watches to the US jumped nearly 14% compared to the same month last year.
More striking is Ireland, which plays host to a number of international pharmaceutical firms.
Its exports to the US jumped 210% in February to nearly €13 billion, with 90% of those being pharmaceutical products and chemical ingredients.
Fermob, a French manufacturer of metal garden furniture that sells around 10% of its products in the US, said it began planning for US tariffs once the result of the presidential election became known in November.
It stepped up production in January and February.
'We've sent around 30% of our extra stock to the US,' said the company's chief executive, Baptiste Reybier.
That extra production has benefitted transportation firms.
Lufthansa Cargo said it has seen in recent weeks 'an increase in demand for shipments to the US'.
The trade war 'has incited companies to accelerate certain stages in their supply chains', it told AFP.
'A similar trend was seen for the delivery of cars from the EU to the US,' it said.
The phenomenon also concerns US-made goods.
The Japanese newspaper Nikkei reported recently that Chinese tech firms were snapping up billions of dollars of artificial intelligence chips made by US firm Nvidia in anticipation of Washington imposing export restrictions.
'Short-term approach'
Stockpiling is not a solution, however, said analysts.
Matt Jochim, a partner at consulting firm McKinsey who helps companies with supply chain issues, called stockpiling 'a very short-term opportunistic' move.
He said the practice has limits as tariffs are constantly changing and it isn't always practicable.
'In a lot of the electronics space, it's also hard to do, because the technology changes so quickly, you don't want to get stuck with inventory of chipsets or devices that are the prior version,' he said.
Fermob said it was taking a measured approach to stockpiling.
'Otherwise you're replacing one risk with another,' the manufacturer's Reybier said.
'You have to finance stocks and there is also the risk of not having sent the right product.'
Having a local subsidiary with warehouses also helped, Reybier added.
'It's too early to say whether we should have sent more or not.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Star
24 minutes ago
- The Star
Singapore's Changi Airport Group awards S$999mil contract for underground tunnels at Terminal 5
Changi Airport's fifth terminal will be as big as Terminals 1 to 4 combined. It is slated to open in the mid-2030s. - Photo: Changi Airport Group SINGAPORE: A contract worth S$999 million for the construction of underground tunnels at Changi Airport's Terminal 5 (T5) has been awarded to a joint venture between a Japanese construction company and a Singapore-based construction and civil engineering firm. Construction of the tunnel system, which will transport passengers and baggage across T5, is expected to take more than four years, Changi Airport Group (CAG) said on Tuesday (June 10), about a month after a ground-breaking ceremony for the terminal. It will be built by Penta-Ocean Construction and Koh Brothers Building and Civil Engineering Contractor (KBCE). The tunnel system will house key infrastructure, including automated people-mover systems similar to the Skytrain, as well as baggage-handling systems. There will be two people-mover systems within T5 that can connect departing passengers to their gates and arriving passengers to two arrival immigration halls. A common services tunnel will contain dry and wet utilities such as electrical power, communication systems and water services. CAG said the works also include a ventilation building that will support this tunnel, and provisions for a future underground infrastructure tunnel. Changi Airport's fifth terminal will be as big as Terminals 1 to 4 combined. It is slated to open in the mid-2030s. Designed to handle about 50 million passengers a year, T5 will effectively double the size of Changi Airport and allow it to handle 140 million passengers yearly – boosting its current capacity of 90 million by more than 55 per cent. 'The award of the (contract) marks another important development in the construction of T5 and the wider Changi East project,' said Ong Chee Chiau, CAG's managing director for Changi East. T5 is part of the larger 1,080ha Changi East development that includes Changi Airport's third runway, as well as cargo complexes and other supporting aviation and ground transport infrastructure. Ong said CAG is pleased to partner Penta-Ocean Construction and KBCE, as both firms have strong records. CAG said Penta-Ocean Construction has had a pivotal role in the development of Changi Airport. The firm carried out land reclamation works in the 1970s that enabled the airport's initial expansion. It also undertook extensive ground improvement and land preparation works between 2014 and 2020 for T5 and the extension of the third runway. KBCE has also undertaken projects for CAG, including the construction of a retention pond at Changi Airport. A retention pond is an artificial pond designed to hold and release stormwater in a controlled manner, typically to prevent flooding. The company also carried out development works to enable operations across three runways at Changi Airport through a separate joint venture. The airport's third runway is estimated to start operations in the last quarter of 2027, The Straits Times reported in April. Prime Minister Lawrence Wong broke ground on T5 on May 14, calling it a 'bold move' to keep the Singapore air hub competitive. At present, Changi Airport is linked to more than 170 cities. With T5, the airport will be able to reach its target of more than 200 city links by the mid-2030s. Passenger traffic in the Asia-Pacific – already the world's largest air travel market, taking about a third of the global share – is projected to double in the 2040s. CAG said the extra capacity at T5 will position the airport to ride the expected surge in air travel within the Asia-Pacific and beyond. Ong said in May that construction on T5 will intensify in the next few years and peak around 2029. With three runways operational by the time T5 opens, a second control tower will be built to manage air traffic, he said. In a first for the airport, T5 will house a ground transport centre, bringing together the Thomson-East Coast and Cross Island MRT lines, buses, taxis and other transport services. - The Nation/ANN


Malaysian Reserve
27 minutes ago
- Malaysian Reserve
Open Source Summit Europe and AI_dev Open Source GenAI & ML Summit Europe Reveal 2025 Speaker Lineup Showcasing Global Open Source and AI Innovation
Leading open source technology and AI events provide insight and direction for fast-changing landscape SAN FRANCISCO, June 10, 2025 /PRNewswire/ — The Linux Foundation, the nonprofit organization enabling mass innovation through open source, today announced the schedule for Open Source Summit Europe 2025 (OSS EU), taking place this year in Amsterdam, Netherlands from 25-27 August 2025; and the schedule for AI_dev Open Source GenAI & ML Summit, co-located on 28-29 August 2025. The premier events for open source technology and AI developers, community leaders and end users features the latest in open source innovations, from the evolution of the Linux Kernel to the game-changing power of open source reasoning models. A Linux Foundation Research report on open source maturity in Europe found that 64% of European organizations saw a rise in business value from using open source software, and 43% believe AI and ML are key areas that will benefit from open source. 'Europe is at a pivotal point in open source adoption and innovation driven by government investment, a heightened emphasis on global collaboration, and the meteoric growth of open source AI,' said Jim Zemlin, Executive Director of the Linux Foundation. 'Open Source Summit Europe, and the addition of AI-dev Open Source & GenAI Summit, provides an opportunity to showcase the breadth of innovation being made with open source technologies by developer and member communities. Together, we will expand the global vision for the future of open source software.' The Evolving European Open Source Ecosystem 'We're excited to bring Open Source Summit Europe to the Netherlands, one of the most historically innovative and open source savvy locations in Europe,' said Gabriele Columbro, General Manager of Linux Foundation Europe. 'As open source plays an ever more critical role in the European technology strategy in the age of AI, we are thrilled for this community to influence the direction of global open source development. No doubt the collaboration and lessons learned during the conference will shape the future of the world's foundational technologies.' Highlights at OSS EU 2025 include: Cloud and Containers: Powering Scalable Innovation Modern digital infrastructure runs on open source cloud native projects. OSS EU brings together leaders and maintainers of the world's most impactful cloud and container projects, ushering in the next generation of infrastructure innovation. Speaker Highlight:'No Internet – No Problem? Air-Gapped Kubernetes on Bare Metal' – Christian Bendieck and Carolin Dohmen, Cloud Engineers, BWI GmbH The curated cloud and container track includes 26 sessions and lightning talks; visible here. Standards & Specifications: The Future is OpenA new report finds 78% of organizations using or contributing to open source software expect their responsibilities to change under the Cyber Resilience Act (CRA). OSS EU will bring the European community together to provide a practical, detailed look at future cybersecurity and vulnerability handling obligations. Speaker Highlight:'The CRA, Where Are We Six Months After Its Approval' – Timo Perala, Head of Open Source Network and Service Automation, Nokia The curated Standards & Specifications track includes 11 sessions and lightning talks; visible here. Linux: A Shared FoundationLinux remains the world's most collaborative software effort, evolving the core of modern computing. OSS EU will showcase the latest advancements in Linux technology, powerful use cases and insight into the future of Linux. Speaker Highlight:'Three Decades in Kernelland' – Jonathan Corbet, Executive Editor, The curated Linux track includes 21 sessions and lightning talks; visible here. Additional conference tracks include Open Source Leadership, OpenGovCon, Embedded Linux Conference, Safety Critical Software, Digital Trust, Operations Management, Open Source 101 and more. Explore the tracks here. Artificial Intelligence: By and For the Open Source CommunityOpen source adoption is skyrocketing – especially as AI booms. A recent report found that 89% of organizations are using open source in their AI stack. Not only does the open source community drive AI innovation, but it also helps govern AI by keeping it transparent and accessible. Given this explosion in use, attendees of OSS EU will have the opportunity to register for AI_dev Open SourceGenAI & ML Summit; a co-located event on 28-29 August. This event will explore the full impact of AI and how open source supports the democratization of AI. 'Open source AI has evolved from simply powering applications to leading innovation and driving global competition,' said Ben Lorica, Strategic Content Chair, AI_dev: Open Source GenAI & ML Summit. 'By gathering the community and organizations behind leading AI technology in Europe, AI_dev is the nexus event for developers looking to build the next game-changing AI application.' Speaker Highlight:'Making AI Unconditionally Open for All' – Emmanouil (Manos) Koukoumidis, CEO, Oumi The summit includes 60+ sessions and lightning talks; visible in the schedule. RegistrationRegistration for OSS EU and its co-located events are open. Discounted registration is available for academics, government employees, hobbyists, and small businesses – view full details here. Members of the Linux Foundation receive a 20% discount on registration and may contact events@ to request a discount code. To request a press pass, contact pr@ Event SponsorsThank you to the sponsors who help make OSS EU 2025 possible, including: Diamond Sponsors: Amazon Web Services, Google and OpenEuler Platinum Sponsors: OpenSearch Software Foundation Gold Sponsors: Automattic, Cloud Native Computing Foundation, Coder, LavinMQ, Red Hat, Sony and SUSE Silver Sponsors: Arm, CAMARA, CETIC, Civil Infrastructure Platform, New Relic and Sentry For information on becoming an event sponsor, see here. About the Linux FoundationThe Linux Foundation is the world's leading home for collaboration on open source software, hardware, standards, and data. Linux Foundation projects are critical to the world's infrastructure, including Linux, Kubernetes, LF Decentralized Trust, ONAP, OpenChain, OpenSSF, PyTorch, RISC-V, SPDX, Zephyr, and more. The Linux Foundation focuses on leveraging best practices and addressing the needs of contributors, users, and solution providers to create sustainable models for open collaboration. For more information, please visit us at The Linux Foundation has registered trademarks and uses trademarks. For a list of trademarks of The Linux Foundation, please see its trademark usage page: Linux is a registered trademark of Linus Torvalds. Media ContactKristi PiechnikThe Linux FoundationPR@


New Straits Times
an hour ago
- New Straits Times
Asean eyes stronger economic ties with Norway in green and digital sectors
JAKARTA: Asean is looking to deepen its partnership with Norway to advance green growth, digital innovation, and sustainable development across Southeast Asia, as the region navigates evolving climate challenges, economic transformation, and shifting global dynamics. Secretary-general Dr Kao Kim Hourn said Norway's expertise in renewable energy, maritime innovation, digital technology, and sustainable aquaculture makes it a natural partner in advancing the region's long-term goals. "Norway's global leadership in green solutions and the blue economy aligns closely with Asean's sustainability goals and development priorities," he said at a dinner reception with the Asean Committee and other stakeholders on Monday, according to a statement released by the Asean Secretariat on Tuesday. The event was hosted by the Ambassador of Indonesia to Norway, Teuku Faizasyah, at his official residence in Oslo. Also in attendance was the Ambassador of Norway to Asean, Kjell Tormod Pettersen. Kao also highlighted education, research, and innovation as vital areas to nurture the talent and technology that will shape the bloc's future. According to data from the secretariat, bilateral trade between Asean and Norway reached US$3.6 billion in 2024, while Norwegian foreign direct investment totalled US$22.5 million. While the numbers are encouraging, he emphasised that there is significant untapped potential and called for bold and practical steps to advance the partnership to the next level. "In today's global landscape marked by rising protectionism and mounting geopolitical uncertainties, collaborating with like-minded partners all over the world such as Norway becomes ever more critical to upholding open, inclusive, and rules-based economic cooperation," he added. Kao is on a working visit to Norway from June 9 to 12 with stops in Oslo and Bergen at the invitation of the Norwegian government, marking 10 years of the Asean-Norway Sectoral Dialogue Partnership. Norway, which is not a member of the European Union, was recognised as a Sectoral Dialogue Partner of Asean at the 48th Asean Foreign Ministers' Meeting on August 4, 2015 in Kuala Lumpur, Malaysia. – Bernama