Companies turn to stockpiling in US amid Trump trade war
Fermob, a French manufacturer of metal garden furniture that sells around 10 percent of its products in the United States, said it began planning for US tariffs once the result of the presidential election became known in November.
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 United States.
French cosmetics firm Clarins didn't hesitate and stepped up shipments to the United States at the beginning of the year.
"We've built up three months of stocks, which represents $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 United States.
In March, exports of Swiss watches to the United States jumped nearly 14 percent compared to the same month last year.
More striking is Ireland, which plays host to a number of international pharmaceutical firms.