Trump Tariffs Drive Companies To Stash Imports In Tax-Free Foreign Trade Zones

As new tariffs restructure U.S. trade dynamics, companies are opting for customs-approved storage solutions to make things easier. The increasing interest around foreign trade zones (FTZs) and bonded warehouses indicates rising concern about expenditures and uncertainty.

What Happened: After tariff hikes implemented by President Trump, reaching 145% for Chinese products, U.S. companies are increasingly shifting imported goods into FTZs and bonded warehouses. These zones let firms postpone or lower duty payments until goods enter the U.S. market.

"A year ago, an FTZ was a nonstarter," said Jackson Wood of Descartes Global Trade Intelligence to CNBC. "Now they are crunching the numbers, and for some it makes financial sense."

See Also: Trump Defends Tariffs, Lists ‘Non-Tariff Cheating’ Tactics Like Currency Manipulation And IP Theft — Calls Himself The ‘Greatest Friend’ Of American Capitalism

Why It Matters: FTZs have become a strategic workaround to tackle fast-moving tariff shifts, particularly as other relief tools like duty drawback do not apply to the latest increases.

"We're at the point where we have a combination of clients waiting the next 30 days to see what happens," said Maersk's Janet Labuda. Meanwhile, membership in the National Association of Foreign Trade-Zones has reached unprecedented highs. "Any time tariffs are in the news, we see an increase in interest," said association president Jeffrey Tafel.

While costs for the initial setup for FTZs can be steep, companies from retail to aerospace are taking a closer look at their supply chain strategies to safeguard against prolonged trade uncertainty.

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