So here we are: July 2025. Tariffs on China-made goods are sky-high, but the dust has temporarily settled. There’s a pause in new enforcement actions. And what’s the first thing a lot of brands are doing?

Stockpiling like it’s Costco on a snow day.

Look, I get the impulse. You want to beat future price hikes. Lock in rates now. Stay ahead of the next wave. But this mindset, that the tariff pause is some kind of bonus round or rebate window, is a dangerous trap. I’ve seen it play out, and it rarely ends well.

Why Brands Are Stockpiling (And Why That’s Risky)

Modern Retail recently highlighted how brands are tying up cash in inventory that might not sell for months. Some are maxing out warehouse capacity. Others are renting trailers just to hold product.

That’s not a strategy. That’s panic disguised as preparedness.

When you stockpile, you’re converting liquidity into risk. You’re betting on stable demand, perfect forecasting, and a logistics environment that won’t throw any curveballs. That’s a lot of assumptions.

And the math isn’t pretty:

• Holding costs are rising (storage fees, insurance, shrinkage).
• Demand is softening across DTC; June sales were down 25% YoY for small brands.
• Interest rates remain high, so capital is expensive.

Inventory Isn’t An Asset If It’s Not Moving

Let’s stop pretending every product sitting in a warehouse is “value.” If it’s not turning, it’s dead weight. And right now, many brands are sitting on SKUs that may not move until Q4, if at all.

Worse, some brands are prepaying for production to “lock in pricing,” leaving them vulnerable to shifts in demand, freight delays, or SKU obsolescence. Cash on shelf is not cash in hand.

I’ve personally seen brands take on more inventory than they could realistically sell in two quarters. And once your cash is tied up, options disappear. Marketing slows. Hiring freezes. And suddenly, you’re in survival mode, not growth mode.

What Smart Operators Are Doing Instead

The brands I see winning right now aren’t chasing bulk discounts; they’re chasing flexibility.

Here’s what they’re doing:

1. Hedging their sourcing

They’re not all-in on one supplier. They’re exploring Mexico, Vietnam, and even domestic production where feasible. Not because it’s cheaper (it’s often not), but because diversified sourcing creates leverage and optionality.

2. Rebalancing cash flow

Rather than drop $100K on inventory, they’re testing shorter runs. They’re working capital lines in smarter ways. And they’re getting surgical with demand planning, looking at return rates, sell-through velocity, and seasonality with fresh eyes.

3. Rethinking fulfillment

Tariffs are just one cost center. Fulfillment is another. Now’s the time to evaluate whether your fulfillment model is nimble. Can you scale up fast if demand spikes? Can you pull back quickly if it softens?

This is where Cahoot-style distributed fulfillment is a game-changer. You don’t have to commit to massive inventory deposits in one location. You flex regionally, based on demand, saving money on last-mile shipping and reducing your warehouse exposure.

The Trap Of Tariff-Driven Optimism

Every time there’s a pause, brands breathe a little easier. I get it. But temporary relief isn’t a long-term strategy. Tariffs could rise again. Port delays could return. Consumer sentiment could weaken further.

Smart founders are treating this moment like a chess move, not a victory lap. They’re asking:

• Where am I most exposed?
• Where am I overcommitted?
• How fast can I pivot if X happens?

If you can’t answer those questions confidently, you’re not in control, you’re just hoping the next hit doesn’t land.

Final Thought: Play For Resilience, Not Rebates

This isn’t about being pessimistic. It’s about being ready.

There’s opportunity in this pause. But it won’t come from stockpiling; it’ll come from brands who treat the next 60 days as a strategic window. Tighten up ops. Diversify your sourcing. Build fulfillment agility.

Use the pause to prep your playbook, not to pile up product.

Frequently Asked Questions

What is the risk of stockpiling inventory during a tariff pause?

It ties up cash, increases holding costs, and exposes brands to shifts in demand or logistics disruptions.

How should brands respond to tariff uncertainty?

Diversify suppliers, test shorter production runs, and maintain fulfillment flexibility.

Is now a good time to invest in bulk production?

Only if demand forecasting is strong, otherwise, it’s safer to focus on agility.

How can a fulfillment strategy reduce tariff-related risk?

A flexible, distributed model like Cahoot helps reduce shipping costs and regional storage exposure.

Will tariffs increase again in 2025 and beyond?

It’s unclear, but most experts expect volatility; brands should plan accordingly.