Amid escalating global trade tensions and tariff hikes, US companies are using free trade zones to postpone paying duties

Following the uncertainty of the 2025 global trade war and rising tariffs, US companies are turning to free trade zones (FTZs) and bonded warehouses to avoid tariffs. FTZs allow goods to be imported duty-free as long as they remain in the zone, and duty only applies when exiting. Big companies such as Pfizer and Ford have benefited from these zones, but recent executive orders have eliminated the reverse-tariff advantage. Many firms have now migrated to bonded warehouses to take advantage of possible tariff reductions.