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Foreign Trade Zones (FTZ)

Foreign Trade Zones, a relic of 1930s, are suddenly popular. Goods imported can simply be stored in FTZ warehouses for up to 5 years and the duty is paid only when those goods are withdrawn for sale or use. Suddenly, a tariff problem becomes a logistics problem - logistics is already a huge industry as it replaced much of what old JIT delivery/manufacturing was. Of course, the goods may be outdated or out of fashion/style in 5 years.

Recent pre-tariff users of FTZs have been consumer goods and retail, automotive, aerospace, and electronics.

But when tariff rules can change by the day, this is suddenly a good logistics solution. Alternate is not to ship in advance and take the tariff lumps as they come.

https://www.cnbc.com/2025/04/21/trump-tariffs-import-surge-tax-free-foreign-trade-zones.html
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