As of August 1, 2025, the U.S. has officially lifted the temporary tariff exclusions on a wide range of imported goods, triggering higher duty rates for importers across industries. If your business relies on global sourcing, you may already be feeling the pressure.
But here’s the good news: It’s not too late to take action. A proven strategy to soften the blow of rising import costs is leveraging a Foreign Trade Zone (FTZ), and NEMA is here to help you do just that.
What’s Changed Since August 1?
Thousands of product lines that were previously excluded from Section 301 tariffs are now back under full duty rates, leading to higher landed costs and tighter profit margins for many U.S. businesses. Sectors particularly affected include:
- Industrial and consumer electronics
- Automotive and heavy equipment parts
- Textiles and apparel
- Pharmaceuticals and medical supplies
- Machinery and manufacturing components
With these increases already in effect, companies are facing immediate challenges in budgeting, pricing, and fulfillment. If you’re seeing spikes in import costs or delays in product movement, you’re not alone.
Why an FTZ Still Makes Strategic Sense
Even with the tariff changes already in motion, implementing an FTZ program can mitigate long-term costs, improve operational flexibility, and streamline customs processes.
Here’s how your business can benefit:
Duty Deferral – Delay paying duties until goods leave the FTZ and enter U.S. commerce.
Duty Elimination – Exported goods are not subject to U.S. duties.
Inverted Tariff Advantage – If your finished product has a lower duty than its components, pay the lower rate.
Cash Flow Improvement – Hold onto working capital longer by deferring duties.
Operational Efficiency – Reduce customs paperwork, brokerage fees, and compliance risks.
An FTZ isn’t just a workaround, it’s a long-term supply chain strategy that protects your business in an unpredictable trade environment.
NEMA: Your FTZ Partner from Start to Finish
Navigating the FTZ landscape takes experience, and that’s exactly what NEMA brings to the table. As a trusted FTZ administrator and international logistics provider, we help businesses assess their duty exposure, plan their FTZ operations, and stay compliant every step of the way.
From FTZ setup and activation to documentation, recordkeeping, and day-to-day compliance, NEMA’s International Operations team is ready to help you pivot and protect your margins, even now, after the August 1 changes have taken effect.
It’s Not Too Late to Act
The tariff pauses may have ended, but your business still has options. The sooner you start exploring FTZ benefits, the sooner you can offset increasing costs and regain control over your supply chain.
Connect with NEMA, Inc. today to see how an FTZ can make a difference, for Q3, Q4, and beyond.
