I need to read a few more details and see if I can find a link to post here. A commodity broker market info page mentioned them today and that it is probably limiting the dire predictions of many about the tariffs.
From the quick read it appears several places in the United States have really large warehouses that are designated FTZ ( free trade zone ) The basics of how they work would be a company but 500,000 widgets to replace future inventory. The widgets are placed in the FTZ in the U.S. Warehouse, tariffs are not paid until the inventory is taken out of the warehouse. This gives time for tariffs to come down but still have access to short shipping times.
- farmstud60
- Today, 03:31 PM
- VitaMan
- Today, 04:15 PM
This is nothing new. In the US, you can keep your goods in a bonded warehouse or a designated free trade zone for a period of time, until you believe it is the right time to move them out and try to sell them.
It doesn't help the importers much on tariffs. It is a guessing game for them as to what tariffs will be, and just adds another element of risk.
Just like farmers can play the futures market for their later crops.
It doesn't help the importers much on tariffs. It is a guessing game for them as to what tariffs will be, and just adds another element of risk.
Just like farmers can play the futures market for their later crops.