The logistics world is seeing average tariff rates jump by 10x! Curtis Spencer of IMS Worldwide breaks down how Foreign Trade Zones (FTZs) are no longer just a good idea, they&#x27;re essential for cutting costs and building resilient supply chains. Learn about duty deferral, re-export benefits, and merchandise processing fee caps that can save your business millions. Follow the FreightWaves Today Podcast Other FreightWaves Shows Learn more about your ad choices. Visit megaphone.fm/adchoices

Why Foreign Trade Zones Are Now ESSENTIAL for Importers | FreightWaves Today

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**Podcast:** FreightCasts

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Julie, this is our international segment. We've really gone all over to the macro, talked about drivers. We're now going to talk about Foreign Trade Zones. Obviously a hot topic. It's interesting. I was in airport-to-airport freight. It was where I started my career over 25 years ago, 27 years ago. I heard a lot about Foreign Trade Zones being in airport-to-airport and then I never heard it again. Container freight stations, all that fun stuff.

It has now become a hot topic because of all the trade policy and here to talk about that is the CEO of IMS. IMS Worldwide is going to talk about Foreign Trade Zones, the CEO, Curtis Spencer. Curtis, welcome to FreightWaves Today. Thank you very much and welcome to my locked up shoulder here. I just had shoulder surgery so it's been a crazy week.

So you're locked up. You've got nothing to do but talk to us. We appreciate you spending your time with us. Tell us a little bit before we get started about IMS Worldwide. What do you guys do for clients?

IMS Worldwide. IMS Worldwide. Now, in the post-SCOTUS world where SCOTUS has had actually two hearings, one got a lot of attention.

It's the Liberation Day tariffs. Is there still demand for Foreign Trade Zones or have companies sort of reevaluated that? So, yeah, here's what really happened. In the beginning of the IEPA tariffs, tariffs rose really high to about 30%. And then they settled back down to 25% and they went back up to about 50%. And then SCOTUS had it as ruling. And now the IEPA tariffs are gone.

But Trump and Biden had the 301 tariffs specifically for China and other very specific companies. But they weren't, quite frankly, they weren't as utilized until we got to Trump 2. I call it Trump 2 because that's when he started putting on the extra tariffs. So, to shake it all out and kind of, you know, you can cuss and discuss what the tariffs are going to be for 55 hours and not get it right.

So, here's what we think it's going to come down to. The average tariff rate before Trump won was 2.5%. The average tariff rate today, second half of 2026, is and will be right around 20 to 25%. Well, what you have there, Craig, is you've got a 10%, excuse me, a 10X jump in your average tariff rate.

So, whereas foreign trade zones made a lot of sense before Trump won, they make 10 times as much sense after Trump won. Well, I imagine that's really driven up inflation. I mean, it made your business far more valuable in this environment than it was before. Absolutely. Is that changing the way investors are thinking about investing in foreign trade zones? Oh, 100%.

The largest real estate investment trusts and the financing organizations behind developers are using the foreign trade zone more and more and more to get set up for their buildings to be able to handle a foreign trade zone user request. They absolutely see it and love it. Sorry. No, I'm sorry. Go ahead. I'm sorry. No, I'm good. I'm good. Ye...

Why Foreign Trade Zones Are Now ESSENTIAL for Importers | FreightWaves Today

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Why Foreign Trade Zones Are Now ESSENTIAL for Importers | FreightWaves Today

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.