Trump tariffs lead to import of tax growth in “foreign trade”

Companies, big and small new tariffs realized President Trump.

These places called foreign trade zones (FTZS) and related warehouses are specially designated, provided with storage or production, approved by US customs, where the cargo does not obey us duty and excise duties. The responsibilities are only paid by importers when the item comes out of FTZ or the bound composition for US market consumption.

“A year ago, FTZ was unusual out of the investment that the company should make,” said Jackson Wood, director of the Global Trade Intelligence Descartes, which provides FTZ technology assistance. “Now they crite the numbers to find out whether it has financial meaning, and for some it is,” Wood said, including smaller companies that start viewing FTZS as Tariff tariffs take off.

There’s 90-day pause in place For most countries, before the new tariffs have hit, although the tariffs for Chinese goods are now up to 145%.

FTZS allows American importers and manufacturers to store finished products indefinitely without paying trading duties. The cargo imported under the bonds and placed in the repository can be stored up to five years, starting from the date when it was imported into the country. Depending on the day when freight transportation is taken out of the FTZ or related site, importers can pay either reduced customs duties, taxes, or fees, or not at all – a strategic approach to import management, also known as “inverted tariff”.

The postponement of duties, taxes and fees, which are usually applied when imported, can significantly increase the company’s financial position, ensuring savings, prompt flexibility and improvement of cash flows.

Jeffrey J. Tel, president of the National Association of Foreign Trade Zones, says his organization began to observe an increase in membership during the 2024 presidential election, and registration continues to infuse, and membership at the highest level.

“Given the tariffs that are happening so fast, there are companies looking for a FTZ storage space to postpone the duties until they can decide how they want to continue the goods, most of which were purchased before there were known tariffs,” Telf said. “Whenever the news tariffs, we see an increase in interest in all programs that help us to mitigate the impact.”

Telf said also increased interest in receiving ftz grants that are authorized Board with foreign trade zones To install, operate and support the foreign trade area, with requests up to two to four times, which is characteristic.

FTZS was created by Congress in the 1930s to stimulate domestic investments in the US Foreign Trade program more than 550,000 US workers in all 50 states and Puerto Rico, as well as in virtually every industry sector.

Companies can choose at all so as not to send goods and the latest data from Asia shows a steep slump In production orders and swimming with freight vessels. Another option-lining of goods and the use of a zone without duties.

“The latest tariff changes made the FTZ more attractive, as other variants of reduction or recovery, such as lack of duties, are not entitled to new tariffs,” said Chelsea, Gardner’s behavior, Maersk North American. “As a result, the company that previously rejected the FTZ view them as a viable strategy,” she said.

“We are at the moment when we have a combination of customers waiting for the next 30 days to find out what will happen,” said Janet Labud, the head of customs and trading issues in Maersk. “We have others that take the products and move into the folded warehouses for 30 days to find out whether it falls from it, and then pull it on the duties that pay on this day,” she added.

FTZ customization can be expensive as well as payments for professional services for navigation in the initial process and approval of the zone, as well as prepared by employees and highlighted IT systems to manage the area after work.

According to Gardner, the use of FTZ is more dependent on the scale of the company imported activity rather than the industry itself, but the main FTZS users were consumer goods and retail, automotive, aerospace and electronics.

In addition to storage of warehouses, production plants, or plants, the FTZ may become in cases where the company’s components have a higher tariff than the finished good. Once the finished good comes out of the FTZ, the company pays the lower tariff. There is also an opportunity for companies to approve the scrap of any residual material that is not used during the duty. This release may also include export of goods to another country.

Jordan Durt, President Redwood Logistics Mexico, said his company is holding many prospects and requests for FTZ services. While Trump’s administration stated that he was in Negotiations with 75 countries for trading transactions Since the announcement of new tariffs, Devart said that a splash of FTZ’s interest is a sign that importers are worried about how long the trade war can last. “It seems that customers are looking for a solution when the tariffs follow the long -term prospect,” he said.