Inside the internal war tariffs, “FTZS” and the enslaved warehouses

To compensate High tariff costs and Uncertainty in the warCompanies use foreign customs trade areas (FTZS) and enslaved warehouses to delay or reduce product taxes.

FTZS has a long history dating back to a previous period of commercial conflict, which was created during the large recession period by Congress to encourage international trade and increase exports at a time when SMOOT-Hawley tariffs up to 53 %.

Companies that import raw materials, half of them, or components of foreign countries to FTZ or the worshiped warehouse are mainly in the tariff bubble, and this means when the United States enters it that it is stored free of graphics.

Once you enter FTZ, the product can be collected or modified. The duties are collected only after the product leaves the area and enters us in trade. Products in FTZ can be stored indefinitely. Single warehouses have a limit of up to five years.

There are FTZS in all fifty states, and there are approximately 2,240 feet all over the country, according to the customs of the United States.

For companies that have been hunting in the Trump’s commercial war, maintaining money is the king.

“FTZS and the tactic warehouses mainly flow the company’s cash flow,” said Jason Strickland, sales manager at Logistics Company, by delaying fees payments. “There is also an additional benefit that if a FTZ product is manufactured and re -exported abroad, no duty payments are incurred at all.”

Before the 2025 World Trade War, companies that manufacture products in FTZ had what is known as “inverted tariff”. This means that the company has an option to pay a lower fee for the final product in exchange for paying the highest duties on the individual components that were brought to the manufacturing process.

Companies within FTZS include automobile companies Fordand General Motors and ChryslerAs well as General Electric, Intel and Sony. According to the world -free regions organization, FTZS was also used by PFIZER while developing a Covid vaccine. The Pfizer program enabled the production of clips without incurring additional duties on the components of the drugs and storing the vaccine until it receives the approval of the FDA.

But President Trump has ended this base with recent executive requests, and companies such as Regent Tech Industries, which make marks of liquid roads used by road crews to make lines on the nation’s roads, side roads, and highways, have become a big problem, which leads to millions of dollars in an additional tariff.

“Our product is basically similar to a cake bread,” said Helen Torkus, President of Regent Tech. “If you miss a single component, you cannot make this cake. We cannot get all our ingredients here. We pay about 7 % now because the inverted tariff option is no longer available to us.”

Without taking advantage of the inverted tariff FTZ, many companies quickly turned into solid warehouses. Strickland described the demand for CNBC as through the ceiling.

Companies can import products in a bubble under a higher tariff rate, and store without duties. But unlike the lock in the tariff rates on FTZS, if the tariff decreases while the product is in a transverse warehouse, the company can launch its products and pay the low tariff rate.

“At the end of the day, the goal is to protect your cash flow,” said Strickland. “You do not want to bring all your goods and spend your cash flow against the definitions that may not be here, as you know, six weeks, six months, if you can postpone so that the market is ready to consume these goods. I think this is winning.”

Watch the full video above to learn more about the hideouts of this trade war.