How You Can Use Foreign Trade Zones to Fight Back Against Tariffs

Throughout 2025, businesses have grappled with an increasingly challenging global trade environment thanks to tug-of-war tariff policies. Inventory planning has become very difficult for supply chain managers everywhere, and the specter of even more costly duties and fees looms yet again.

Savvy logistics leaders may feel like their hands are tied. However, foreign trade zones can offer some relief for your supply chain operations and planning efforts. Sam Sharp, CJ Logistics EVP of Customer Development, addressed these unique customs shelters in a recent guest article for our partner YMX Logistics – check it out below.


How Foreign-Trade Zones Unlock Tariff Mitigation, Resilience, and Sustainability

Today’s volatile global trade environment put pressure on supply chains from every angle, including tariff shifts and geopolitical uncertainty to sustainability mandates and growing customer demands. While warehouses and transportation networks have seen waves of innovation, one powerful lever often overlooked by enterprises is the foreign trade zone (FTZ).

FTZs have become a popular tool to mitigate tariffs, improve free cash flow, and increase operational resiliency. Companies like CJ Logistics America are proving that, when combined with integrated logistics solutions, FTZs are more than just duty shelters – they’re major competitive advantages.

What Are Foreign Trade Zones?

In the United States, FTZs are designated sites considered outside of U.S. Customs territory. Businesses can store, assemble, or manufacture goods inside an FTZ without paying import duties until those goods officially enter the U.S. market.

Key mechanics include:

  • Deferred Duties: Pay when goods enter domestic commerce.
  • Inverted Tariffs: Pay the lower duty on finished goods versus higher component rates.
  • Re-export Advantage: Goods shipped out of the U.S. never incur duties.

This structure provides businesses with both financial flexibility and operational control, making FTZs a buffer against tariffs and supply chain volatility.

Insights from CJ Logistics

In a recent white paper, CJ Logistics America underscores how FTZs can be leveraged as strategic assets, not just cost-saving tools.

  • Tariff Mitigation & Duty Savings
    Businesses can reduce or defer duties, often paying lower finished goods rates. These savings compound over large volumes, directly strengthening the bottom line.
  • Cash Flow & Inventory Flexibility
    FTZs enable duty deferral until goods are sold into U.S. markets, creating liquidity cushions and allowing re-export without penalty.
  • Operational Efficiency
    Consolidating customs processes within FTZs simplifies documentation, lowers fees, and frees up resources for more strategic work.
  • Sustainability Alignment
    FTZ-enabled operations support ESG commitments by reducing emissions from consolidated freight, optimizing inventory staging, and minimizing waste.
  • The Value of 3PL Partnerships
    Many enterprises lack in-house FTZ expertise. CJ Logistics emphasizes how partnering with an integrated 3PL ensures companies capture FTZ benefits while also improving transportation, warehousing, and customs integration.

Making FTZs Work for Your Business

For supply chain executives considering FTZ adoption, a few best practices stand out:

  • Run a Cost-Benefit Assessment: Evaluate potential savings from inverted tariffs and duty deferral versus compliance costs.
  • Pilot with a 3PL Partner: Logistics providers can bring FTZ expertise alongside warehousing, drayage, and customs brokerage.
  • Leverage Advanced Facilities: Modern hubs with rail and cold-chain access amplify the advantages of FTZ integration.
  • Embed FTZs in Strategy: Treat FTZs not as a side tactic, but as part of a holistic resilience and sustainability roadmap.

FTZs as strategic levers for cost control, resilience, and sustainability

For enterprises navigating tariff volatility, tight margins, and ESG commitments, FTZs represent a clear opportunity to build more resilient, future-ready supply chains.

If you’d like to start bringing more certainty to your supply chain with foreign trade zones, please fill out the form below and we will set up some time to connect.

The [logistics center] team has always gone above & beyond in ensuring our ability to service our customers comes first. The team has always far exceeded the expectations of partnership between our companies.