Talking Supply Chain: The on-the-ground reality of tariffs

Tariff talk is everywhere in 2025, but while much of the conversation in the supply chain has focused on cost and how to mitigate the impact of tariffs, what impact are they actually having on the ground?

Retail software technology provider SPS Commerce’s Director, Product ManagementTracey Ortiz joined the Talking Supply Chain podcast to talk about what is happening in the warehouse and logistics sectors as a result of tariffs, both actual and proposed.

Ortiz told host Brian Straight there has been a 14% increase in inbound container traffic at the nation’s 10 largest ports as companies sought to bring goods into the country ahead of any tariffs. But that surge is having downstream impacts similar to the post-Covid surge in warehousing.

“What happens is there’s a shortage of warehouse space and like during Covid initially, that drives up the rates, which is a double-edged sword for the companies that are trying to get ahead of it,” she said. “Now they have to store it all, and there’s higher rates so it probably, in the end, doesn’t end up saving a lot, but it felt like there something needed to be done.”

Ortiz went on to discuss some of the strategies companies can employ and some technologies they should be using to help manage their tariff strategies. She also explained some of the hidden costs people don’t think about when it comes to tariffs, such as expedited freight shipping and the potential impact on disrupted deliveries to customers as inventory is shifted to facilities with space to store it, potentially thousands of miles away from the end customer.

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