Free Trade Zones and tariffs

[farmstud60]

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.

[VitaMan]

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.

[farmstud60]

Sigh, didn't realize how totally clueless so many are about markets. The sad part is they think they are experts when in reality the know nothing.

[Yssup Rider]

Since everybody is clueless and only you have the answers, answer this, O wise economist:

What price tag will your new FTZ carry? You Shirley don’t think they won’t be for sale, do you?

Will you be buying one?

Will it have a Trump brand on it?

Will it wear a red hat and shit on everything it sees?

[VitaMan]

OP, apparently a farmer, seems to know nothing about commodity futures. And he is just discovering FTZ, so obviously not an importer.


But he is ready to give his advise about FTZs......

[farmstud60]

Originally Posted by VitaMan

OP, apparently a farmer, seems to know nothing about commodity futures. And he is just discovering FTZ, so obviously not an importer.


But he is ready to give his advise about FTZs......

I know all about commodity futures, but farmers don't buy and sell grain on the board of trade.

[VitaMan]

I know plenty that do through futures contracts in brokerage accounts. They try to stabilize the profit they will receive.


It is good that you are just learning about foreign trade zones and bonded warehouses.