Tariff Uncertainty: Strategic Confusion Across Borders
Shippers are rushing to adapt. In March, trucks jammed the I-35 corridor from Mexico as shippers rushed to beat tariff deadlines, clogging borders and spiking freight costs. According to Uber Freight’s Jose Guerrero, some importers held back, while others flooded borders, driving up costs and creating chaos. "Shippers are adjusting strategies in real time," he told FreightWaves.
FTZ membership is at an all-time high. TSMC, BMW, and Pfizer have expanded FTZ operations, while smaller businesses, once hesitant, are now investigating them seriously. Jackson Wood of Descartes Global Trade Intelligence said interest has surged as tariff risks escalate. A 2025 OECD report estimates a 10% tariff hike could add $400 billion in global trade costs.
Clients are cautious. Many are ordering just enough inventory to stay afloat. It’s a repeat of 2018, when Chinese tariffs caused similar panic. But this time, the scale is wider and the rules are shifting faster.
FTZs: The Tactical Edge for Modern Shippers
Free Trade Zones (FTZs) give logistics leaders a tool to counter rising duties. One client used to ship electronics from Malaysia through the U.S. to the Middle East. We helped move operations to an FTZ in Dubai’s Jebel Ali. They now ship directly, pull inventory on demand, and cut delivery times and costs by half.
Another avoided a steep penalty by rerouting an $800,000 aircraft engine from Canada into the U.S. just before the tariff window closed. If you import $50 million in parts and export half, FTZs are not optional—they’re essential.
Globally, the proof is clear. Panama’s Colon Free Trade Zone processes $33 billion in goods annually for Latin America. Ireland’s Shannon Free Zone supports tech leaders like Intel. In the U.S., FTZs operate in all 50 states. NAFTZ president Jeff Tafel reports inquiries have doubled or quadrupled since tariff talks escalated. "Companies are waking up to the reality that tariffs aren’t a blip. They’re the new normal," he told fDi Intelligence.
In 2023, U.S. FTZs saved companies $6 billion. Canoo alone cut $70 million in 2024-2025. Greg Nichols at DHL reports a "huge uptick" in stockpiling goods in FTZs to dodge future duties. Jordan Dewart of Redwood Logistics Mexico adds, "Customers want long-term solutions if tariffs stay."
Global Implications: FTZs Outpace Trade Talks
While trade blocs like CPTPP and EU-Mercosur develop over years, FTZs offer immediate savings. One client in Panama’s Colon zone saved 20% on $40 million in textile duties. Another in Shannon used FTZ benefits to win contracts in aviation by beating competitors on cost.
"CFOs, CEOs, and COOs are all talking tariffs now. FTZs are their edge," says Melissa Irmen, NAFTZ’s director of advocacy. A Deloitte study projects that companies using FTZs could improve profit margins by 15% by 2027.
What Comes Next: Build a Resilient Supply Chain
Tariffs are no longer a temporary concern. They are baked into the cost of global trade. In my three decades in international shipping, I have seen companies collapse under these pressures and others transform by using the right tools. FTZs are that tool.
From Jebel Ali to Colon and Shannon, we have helped clients set up FTZs that reduced costs, improved speed, and unlocked new markets. Now is the time to act. The longer you wait, the harder it will be to catch up.
The future of logistics belongs to those who plan for volatility. FTZs are not just a buffer—they are a competitive advantage. Don’t let tariffs define your bottom line. Take control now.
Originally posted on Supply Chain Moves.
