Using the Overstock Method to Avoid Tariffs
Using the Overstock Method for Tariff Avoidance Please note that even as this method is used price increases are applied even though there is no real increase to production costs which leads to further profit for the corporations operating in this manner. Openly being discussed in business today are exceptions involving a combination of inventory management tricks, tariff mitigation avoidance strategies and exploiting logistical inefficiencies that some American, Canadian, and Mexican companies use to navigate cross-border trade and warehousing challenges. Let's break down the key components of this process: 1. Overproduction to Create Backlogs and Tariff Evasion: Some companies deliberately overproduce or stockpile goods beyond immediate demand. This is done to create a backlog in warehousing stock, which can then help them sidestep or reduce the impact of tariffs. Under certain trade agreements, especially in the context of the United States-Mexico-Canada Agreement (USMCA) or p...