### The Connection Between Tariffs and Industrial Property
The U.S. tariff situation remains highly unpredictable, with frequent new announcements from the White House. According to Jason Price, Head of Logistics and Industrial Research at Cushman & Wakefield, “The situation remains fluid, and there are still too many unknowns regarding the size, scope, and timing of the tariffs to assess the precise impact.”
In a recent video titled *Tariff Uncertainty Reshapes U.S. Industrial Demand*, Price indicated that tariffs could have significant implications for the industrial sector.
#### More Than Just Trade
While tariffs primarily affect global trade, Price emphasized that industrial demand is influenced by multiple factors beyond seaports and inland ports. “Industrial demand is driven by many factors such as e-commerce, domestic consumer spending, construction materials, and third-party logistics,” he explained.
These elements serve as strong offsets that may mitigate the potential negative impact of tariffs on industrial real estate demand.
#### Increase in Imports
Data from January 2025 revealed that U.S. maritime ports received 2.49 million TEUs of imported goods, surpassing the January 2022 record. “Shippers continue to bring goods into the country amid the uncertainty surrounding the tariff landscape,” Price noted.
Given the climate of uncertainty, many firms are stockpiling goods and materials. “This may lead to a short-term bump in demand for industrial space,” Price added.
#### The Inflation Factor
Economists have widely linked tariffs to rising inflation. Bond investors predict inflation will average approximately 2.6% over the next five years, compared to 1.8% before Donald Trump was first elected. “Bond investors are certainly interpreting Trump’s policy as being more inflationary,” Price observed.
While inflation expectations remain within a moderately low range, Price cautioned that this is a critical trend to monitor. “There are many implications for both real estate occupiers and investors,” he said.
As the tariff landscape continues to evolve, the relationship between trade policies and industrial real estate will remain a key focus.
