How Foreign Trade Zones In The U.S. Help Companies Mitigate Trump Tariffs

A foreign trade zone is a physical site located near a U.S. port of entry where goods can be stored, assembled, modified, or repackaged duty free. Fees are collected only after a product leaves the zone and enters U.S. commerce. Companies that have operated inside Foreign Trade Zones include Ford, GM and Chrysler as well as General Electric, Intel and Sony. Since tariffs were announced interest in foreign trade zones has surged. But a rule change by the Trump administration has drastically changed the way FTZs operate. CNBC traveled to Virginia and New York to find out companies use foreign trade zones to mitigate custom duties and tariffs and how the change to FTZ operations will impact businesses.

Chapters:
0:00- 2:19 Introduction
2:20 - 7:18 Chapter 1. Foreign trade zones
7:19 - 12:05 Chapter 2. Bonded warehouses
12:06 - 15:45 Chapter 3. Inverted tariff

Produced and Shot by: Shawn Baldwin
Reporter: Lori Ann LaRocco
Edited by: Evan Lee Miller
Animation: Andrea Schmitz, Jason Reginato
Senior Director of Video: Jeniece Pettitt
Additional Camera: Carlos Waters
Additional Footage: Getty Images

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How Foreign Trade Zones In The U.S. Help Companies Mitigate Trump Tariffs

Post from CNBC on July 12, 2025

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