Tariffs Rising? Here’s How Smart Logistics Companies Stay Ahead

Shifting U.S. trade policies and retaliatory tariffs are reshaping global supply chains at an unprecedented pace. For logistics, parcel, and shipping (LPS) companies, these developments bring both risk and opportunity. While tariffs drive up landed costs and disrupt established trade lanes, they also accelerate diversification and demand for new logistics solutions. To remain competitive, providers must build resilience, embrace innovation, and partner more closely with shippers navigating an uncertain regulatory landscape.

Key Takeaways

• Tariff volatility is transforming global trade flows. Companies are diversifying sourcing to Southeast Asia, Mexico, and other regions, requiring logistics providers to adapt networks and capabilities.

• International carriers face immediate impacts. Ocean and air freight operators must manage pricing pressure and shifting volumes through asset redeployment, blank sailings, and slow steaming.

• Domestic transportation providers are not immune. Weaker demand and economic uncertainty call for strategic cost management, automation, and differentiated services.

• The end of the de minimis exemption is a major disruptor. New tariffs on low-value parcels will reshape fast fashion and e-commerce fulfillment models.

• Adaptation and agility are essential. Success requires flexible capacity, scenario planning, and investment in value-added services like trade management and customs brokerage.

Evolving Trade Policies: Challenges and Opportunities

Recent shifts in U.S. trade policy have created both obstacles and openings for logistics, parcel, and shipping (LPS) companies. Tariffs are driving up the landed cost of imported goods, forcing shippers to rethink sourcing and transportation strategies. In parallel, logistics providers must quickly develop both short- and long-term approaches to shield operations from volatility while identifying areas for growth.

Nearly 80% of shippers report higher costs from tariffs and duties, and about 70% are actively seeking ways to renegotiate contracts to offset these expenses. For LPS companies, this turbulent landscape demands agility, strategic foresight, and a deeper collaboration with shippers navigating similar challenges.

Recalibrating Global Trade Flows

One of the most significant impacts of tariffs is the redirection of global trade. Trade lanes between China and the U.S.—once among the highest volume—are under sustained pressure. In response, many businesses are diversifying supply chains into Southeast Asia, Mexico, and other parts of the Global South.

This recalibration doesn’t just shift geographies; it changes the commodity mix and the services needed. For example, reshoring or nearshoring manufacturing increases the import of raw materials while altering the flows of finished products. It also fuels demand for value-added services such as warehousing, trade management, and consulting support to navigate new regulatory environments.

Air and Ocean Transportation: Navigating Direct Impact

International ocean and air carriers feel the most immediate effects. Tariffs factor directly into the total landed cost of goods, shaping critical decisions about production locations, shipment volumes, and trade lanes.

Impacts vary by commodity. Fashion and luxury goods often face higher tariff exposure compared to semiconductors or biopharmaceuticals. Additional regulations, such as Section 301 port entry fees on Chinese vessels, further complicate pricing structures - especially for lower-cost goods where these fees represent a larger share of value.

Market volatility remains a persistent concern. Short-term surges to stockpile inventory can drive up airfreight and ocean rates, while longer-term pressure from shippers to reduce costs may lead to softer pricing. To adapt, international carriers are employing tactics like:

• Redeploying assets to alternative geographies.

• Canceling scheduled sailings (“blank sailing”).

• Slowing vessels (“slow steaming”) to cut fuel costs and balance capacity.

• Investing in value-added services such as customs brokerage and HS classification.

Asset-light providers, in particular, may find opportunities to preserve margins if rates eventually decline.

Ripple Effects on Domestic Transportation

Domestic transportation providers - truckload, less-than-truckload (LTL), rail, and intermodal—are also feeling indirect impacts. As international volumes contract or shift, domestic legs of global shipments inevitably face headwinds.

Economic uncertainty, including the threat of stagflation and weaker consumer sentiment, adds pressure to already subdued freight markets. Still, domestic players can act decisively to strengthen their positions by:

• Prioritizing strategic cost management.

• Deploying automation, AI, and dynamic pricing to boost efficiency.

• Innovating services to match evolving customer expectations.

The End of the De Minimis Exemption: A Paradigm Shift for Parcels

Among recent regulatory changes, the termination of the de minimis exemption may prove the most disruptive. This rule previously allowed goods valued under $800 to enter the U.S. duty-free—a cornerstone of many fast fashion and e-commerce models.

Between 2017 and 2024, de minimis entries exploded from roughly 330 million to 1 billion annually. As of May 2025, this exemption ended. While the proposed 120% tariff was reduced, the new rate—54% or $100 per package—represents a sharp departure from the duty-free status quo.

Implications include:

• Significant price increases for low-value consumer goods.

• A potential shift from air freight to ocean shipping to reduce per-unit costs.

• Reduced consumer demand for budget parcels.

LPS providers can play a vital role in helping shippers adapt - whether by reallocating volumes to ocean freight, offering warehousing solutions, or providing customs expertise to ensure compliance.

A Strategic Framework for Resilience and Growth

Despite volatility, logistics companies have strategic levers to build resilience and seize competitive advantage. In the near term, success requires:

• Flexible warehousing near major ports.

• Scalable capacity to respond to demand fluctuations.

• Robust scenario planning to anticipate further regulatory shifts.

• Customer-centric solutions tailored to emerging needs.

Over the longer term, LPS providers should:

• Follow customers into new sourcing regions and trade lanes.

• Expand high-value services such as customs brokerage and HS classification.

• Invest in cost management, automation, and dynamic asset allocation.

Ultimately, the logistics sector’s path forward lies in proactive partnership and continuous adaptation. By leveraging technology and strategic foresight, transportation providers can navigate tariff uncertainty and remain indispensable partners to global shippers.

Worldcraft Logistics Expert Perspective

At Worldcraft Logistics, we view these developments as part of a broader evolution of global trade rather than a temporary disruption. While tariffs and shifting regulations create undeniable challenges, they also open new opportunities to diversify sourcing, enhance supply chain visibility, and offer higher-value services.

We encourage logistics stakeholders to adopt a mindset of long-term agility—building capabilities that help shippers not only survive but thrive in an environment defined by constant change.

This perspective is intended solely to share insights into global logistics strategy and does not endorse or critique any specific government policy, organization, or commercial interest.

Read more articles related to this topic:

• Shipping Costs Surge as U.S. Importers Rush Ahead of China Tariff Deadline

• Trade Tensions Take a Toll: Chinese Exports to U.S. West Coast Ports Decline Sharply

• U.S. Raises Tariffs on China to 125%, Temporarily Eases Measures for Other Countries

*This article has been professionally adapted and edited to suit the audience of Worldcraft Logistics.