Latest news with #JacksonWood
Reuters
08-07-2025
- Business
- Reuters
US ocean imports from China tumbled 28% in June on tariff hikes
LOS ANGELES, July 8 - U.S. imports of containerized goods from China tumbled 28.3% year-on-year in June, after higher tariffs on goods from the country's top ocean trade partner extended a steep drop that began in May, supply chain technology provider Descartes ( opens new tab said on Tuesday. Overall U.S. container imports fell 3.5% from June 2024 levels, coming in at 2.2 million 20-foot equivalent units (TEUs). China imports totaled 639,300 TEUs last month, according to Descartes' analysis of bill of lading data from U.S. customs. The retreat followed an extended run of near-record imports fueled by importers rushing in goods to beat tariff deadlines. China's share of U.S. imports hit 28.8% in June, well below the July 2024 peak of 40%. As a result, popular imports from China, from furniture and toys to textiles and footwear, tumbled last month. At the same time, imports from several Southeast Asian countries, including Vietnam, Indonesia and Thailand surged as retailers and other imports diversified sourcing. U.S. ocean imports appear to be stabilizing after the 7.2% year-on-year drop in May, said Jackson Wood, director of industry strategy at Descartes. Year-to-date, total imports through June are tracking 3.8% above 2024, though growth has slowed compared to earlier in the year, Descartes said. "This isn't as bad as it could have been or as bad as we thought it was going to be," Wood said. Still, uncertainty over U.S. tariffs is likely to persist. The U.S.-China trade truce that lowered punitive tariffs is set to expire on August 10. Trump on Monday signed an executive order extending the partial U.S. tariff rate reprieve on many countries, changing it from July 9 to August 1.
Yahoo
08-07-2025
- Business
- Yahoo
US ocean imports from China tumbled 28% in June on tariff hikes
By Lisa Baertlein LOS ANGELES -U.S. imports of containerized goods from China tumbled 28.3% year-on-year in June, after higher tariffs on goods from the country's top ocean trade partner extended a steep drop that began in May, supply chain technology provider Descartes said on Tuesday. Overall U.S. container imports fell 3.5% from June 2024 levels, coming in at 2.2 million 20-foot equivalent units (TEUs). China imports totaled 639,300 TEUs last month, according to Descartes' analysis of bill of lading data from U.S. customs. The retreat followed an extended run of near-record imports fueled by importers rushing in goods to beat tariff deadlines. China's share of U.S. imports hit 28.8% in June, well below the July 2024 peak of 40%. As a result, popular imports from China, from furniture and toys to textiles and footwear, tumbled last month. At the same time, imports from several Southeast Asian countries, including Vietnam, Indonesia and Thailand surged as retailers and other imports diversified sourcing. U.S. ocean imports appear to be stabilizing after the 7.2% year-on-year drop in May, said Jackson Wood, director of industry strategy at Descartes. Year-to-date, total imports through June are tracking 3.8% above 2024, though growth has slowed compared to earlier in the year, Descartes said. "This isn't as bad as it could have been or as bad as we thought it was going to be," Wood said. Still, uncertainty over U.S. tariffs is likely to persist. The U.S.-China trade truce that lowered punitive tariffs is set to expire on August 10. Trump on Monday signed an executive order extending the partial U.S. tariff rate reprieve on many countries, changing it from July 9 to August 1. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-07-2025
- Business
- Yahoo
There are hundreds of temporary tariff-free zones — and they're in the US
Companies are increasingly turning to a Depression-era policy to avoid President Donald Trump's tariffs, importing goods into designated US zones where they don't have to pay tariffs until they want to. There are 374 foreign trade zones, or FTZs, across the United States, originally designed to help keep companies competitive during the Great Depression. Now, these zones exist in every state and Puerto Rico and allow businesses to import products or materials (inputs) to the United States and store them, duty-free. Importers only pay tariffs when they sell their products to US customers. And if they choose to export items out of the United States, they don't pay any tariff at all. Since Trump announced tariffs on nearly every single country in April, the interest in these foreign trade zones has quadrupled, according to Descartes, a logistics firm that helps companies set up and operate in FTZs. 'Foreign trade zones were first initiated within the United States back in 1934, which coincidentally was the last time that tariffs were as prominent and frankly as impactful as they are now,' said Jackson Wood, director of industry strategy at Descartes. 'And so that's why they're also now much more top of mind for US importers.' Nearly $1 trillion worth of goods was imported into these zones in 2023, according to the Commerce Department, which approves new zones. That's almost one-third of all goods imported into the United States that year, according to Customs and Border Protection data. The zones employ more than half a million people. The US Commerce Department confirmed to CNN that the International Trade Association has seen an increased interest in foreign trade zones, but said it's too early to tell if it will result in more companies operating in the zones. Still, many companies are now stockpiling merchandise in these FTZs. It's not a loophole, experts say, but a way for businesses to maintain cash flow at a time where many are feeling strapped. 'They've always been a bit of a niche instrument in the toolbox for US importers,' said Wood. 'Now, because we are in this incredibly impactful tariff environment, more and more organizations are saying, 'yes the business case to stand up a foreign trade zone makes sense for us.'' Highly secure and heavily enforced, FTZs must be within 60 miles, or 90 minutes, of a Customs and Border Protection port of entry. But no two FTZs are exactly the same. The zones can range in size from a small room in a warehouse to hundreds of acres of an entire company's footprint. Dozens of companies can manufacture and distribute goods out of one warehouse. What the FTZs do have in common is that they offer companies relief — albeit, temporarily — from paying duties amid the current trade war. Audio-Technica, which makes turntables and audio equipment, opened its second warehouse and distribution center in a foreign trade zone in San Diego in June. The Japanese company imports fully assembled products from its manufacturing sites in Japan and China. Eighty percent of that merchandise gets sold into US commerce, while 20% is exported, the company said. 'With the higher tariffs, it gives us the ability to defer the payment of those tariffs until such time we take it out of the FTZ for commerce,' said Dan Ratley, executive director of supply chains at Audio-Technica. Audio-Technica doesn't have to pay tariffs on its imported goods until the company decides to release its products into the United States to sell to customers. That means the company can hold them duty-free in the zone until they're willing or able to pay. 'Everybody's looking into it and trying to minimize (the effects of tariffs), improve their cash flow and avoid it altogether,' said Ratley. Companies can't just set up shop in a foreign trade zone — businesses need a grantee, which acts as an intermediary between themselves and the Commerce Department. These grantees are often cities, ports, or airports, and FTZs can be a boon for them. The city of Phoenix, which has been a grantee since 1988, has helped set up dozens of companies within its zone, known as Zone 75. 'As the grantee, we have to be willing to accept them into our foreign trade zone. Without our letter of support, they wouldn't be able to submit their application,' said Christine Mackay, the director of economic development with the city of Phoenix. FTZs can be economic multipliers, especially for smaller communities. Employment and wage growth rose in communities six to eight years after an FTZ was established, according to a 2019 study published by the National Association of Foreign-Trade Zones. There are currently 75,000 people working in Phoenix's Zone 75. For each job in the FTZ, the city says it generates between three and six additional jobs. Ten years ago, the average salary for a new job in Phoenix was $30,000. Today, it's $84,000. 'We've made a difference in being able to leverage our foreign trade zone grantee status and bring companies that have great economic multipliers, that have these really strong benefits for the community,' said Mackay. There are many benefits to foreign trade zones. But under the current trade regime, some are no longer available. Historically, when companies imported inputs — small parts made of copper, steel or aluminum — to the FTZ to manufacture other products, they would only have to pay the tariff rate on the finished product. But as detailed in Trump's executive orders on reciprocal tariffs in April, companies operating in FTZs must now pay the tariff rate of the inputs, not the finished product, which is often higher. Even if the material or part is used to make a product while in the foreign trade zone, the final product will still be tariffed at the rate of the input when it leaves the zone, the Commerce Department told CNN. For example, Audio-Technica imports fully assembled products into their FTZ from Japan and China, which carry average tariff rates of 10% or 30%, respectively. But some of those products are made with steel and aluminum, which puts the company on the hook for a rate of up to 70% because of the tariffs on those metal parts. 'One of the hallmarks of the foreign trade zone program is this benefit, but these restrictions that have been put in place in these executive orders have stopped all of that. So, if you bring in a component for finished goods into the US foreign trade zone, you're paying the higher duty rate when it leaves,' said Melissa Irmen, director of advocacy and strategic relations at the National Association of Foreign-Trade Zones. While foreign trade zones remain an attractive tool for some importers, current trade policy makes them more complicated for others. 'We do have members who are very upset at having lost the ability to maintain their global competitiveness that this program gave them to stay in the United States — and that is a major problem,' said Irmen. Sign in to access your portfolio
CNN
07-07-2025
- Business
- CNN
There are hundreds of temporary tariff-free zones — and they're in the US
Companies are increasingly turning to a Depression-era policy to avoid President Donald Trump's tariffs, importing goods into designated US zones where they don't have to pay tariffs until they want to. There are 374 foreign trade zones, or FTZs, across the United States, originally designed to help keep companies competitive during the Great Depression. Now, these zones exist in every state and Puerto Rico and allow businesses to import products or materials (inputs) to the United States and store them, duty-free. Importers only pay tariffs when they sell their products to US customers. And if they choose to export items out of the United States, they don't pay any tariff at all. Since Trump announced tariffs on nearly every single country in April, the interest in these foreign trade zones has quadrupled, according to Descartes, a logistics firm that helps companies set up and operate in FTZs. 'Foreign trade zones were first initiated within the United States back in 1934, which coincidentally was the last time that tariffs were as prominent and frankly as impactful as they are now,' said Jackson Wood, director of industry strategy at Descartes. 'And so that's why they're also now much more top of mind for US importers.' Nearly $1 trillion worth of goods was imported into these zones in 2023, according to the Commerce Department, which approves new zones. That's almost one-third of all goods imported into the United States that year, according to Customs and Border Protection data. The zones employ more than half a million people. The US Commerce Department confirmed to CNN that the International Trade Association has seen an increased interest in foreign trade zones, but said it's too early to tell if it will result in more companies operating in the zones. Still, many companies are now stockpiling merchandise in these FTZs. It's not a loophole, experts say, but a way for businesses to maintain cash flow at a time where many are feeling strapped. 'They've always been a bit of a niche instrument in the toolbox for US importers,' said Wood. 'Now, because we are in this incredibly impactful tariff environment, more and more organizations are saying, 'yes the business case to stand up a foreign trade zone makes sense for us.'' Highly secure and heavily enforced, FTZs must be within 60 miles, or 90 minutes, of a Customs and Border Protection port of entry. But no two FTZs are exactly the same. The zones can range in size from a small room in a warehouse to hundreds of acres of an entire company's footprint. Dozens of companies can manufacture and distribute goods out of one warehouse. What the FTZs do have in common is that they offer companies relief — albeit, temporarily — from paying duties amid the current trade war. Audio-Technica, which makes turntables and audio equipment, opened its second warehouse and distribution center in a foreign trade zone in San Diego in June. The Japanese company imports fully assembled products from its manufacturing sites in Japan and China. Eighty percent of that merchandise gets sold into US commerce, while 20% is exported, the company said. 'With the higher tariffs, it gives us the ability to defer the payment of those tariffs until such time we take it out of the FTZ for commerce,' said Dan Ratley, executive director of supply chains at Audio-Technica. Audio-Technica doesn't have to pay tariffs on its imported goods until the company decides to release its products into the United States to sell to customers. That means the company can hold them duty-free in the zone until they're willing or able to pay. 'Everybody's looking into it and trying to minimize (the effects of tariffs), improve their cash flow and avoid it altogether,' said Ratley. Companies can't just set up shop in a foreign trade zone — businesses need a grantee, which acts as an intermediary between themselves and the Commerce Department. These grantees are often cities, ports, or airports, and FTZs can be a boon for them. The city of Phoenix, which has been a grantee since 1988, has helped set up dozens of companies within its zone, known as Zone 75. 'As the grantee, we have to be willing to accept them into our foreign trade zone. Without our letter of support, they wouldn't be able to submit their application,' said Christine Mackay, the director of economic development with the city of Phoenix. FTZs can be economic multipliers, especially for smaller communities. Employment and wage growth rose in communities six to eight years after an FTZ was established, according to a 2019 study published by the National Association of Foreign-Trade Zones. There are currently 75,000 people working in Phoenix's Zone 75. For each job in the FTZ, the city says it generates between three and six additional jobs. Ten years ago, the average salary for a new job in Phoenix was $30,000. Today, it's $84,000. 'We've made a difference in being able to leverage our foreign trade zone grantee status and bring companies that have great economic multipliers, that have these really strong benefits for the community,' said Mackay. There are many benefits to foreign trade zones. But under the current trade regime, some are no longer available. Historically, when companies imported inputs — small parts made of copper, steel or aluminum — to the FTZ to manufacture other products, they would only have to pay the tariff rate on the finished product. But as detailed in Trump's executive orders on reciprocal tariffs in April, companies operating in FTZs must now pay the tariff rate of the inputs, not the finished product, which is often higher. Even if the material or part is used to make a product while in the foreign trade zone, the final product will still be tariffed at the rate of the input when it leaves the zone, the Commerce Department told CNN. For example, Audio-Technica imports fully assembled products into their FTZ from Japan and China, which carry average tariff rates of 10% or 30%, respectively. But some of those products are made with steel and aluminum, which puts the company on the hook for a rate of up to 70% because of the tariffs on those metal parts. 'One of the hallmarks of the foreign trade zone program is this benefit, but these restrictions that have been put in place in these executive orders have stopped all of that. So, if you bring in a component for finished goods into the US foreign trade zone, you're paying the higher duty rate when it leaves,' said Melissa Irmen, director of advocacy and strategic relations at the National Association of Foreign-Trade Zones. While foreign trade zones remain an attractive tool for some importers, current trade policy makes them more complicated for others. 'We do have members who are very upset at having lost the ability to maintain their global competitiveness that this program gave them to stay in the United States — and that is a major problem,' said Irmen.
Motor 1
10-06-2025
- Automotive
- Motor 1
Car Shipments to the US Have Fallen Off a Cliff. Guess Why
Sea-based car shipments to the United States fell off a cliff in May, down over 70 percent versus the same time last year, according to Automotive News . Citing trade database Descartes Datamyne, the report claims there were nearly 10,000 fewer vehicles imported via ocean ports. The report shows a 72.3 percent drop in imports throughout the month of May compared to the same period last year. Descartes Datamyne says importers shipped roughly 9,380 fewer "20-foot equivalent units" to the US. One 20-foot equivalent unit is equal to about one vehicle, depending on size. The data also recorded a 14.8 percent drop in imports for auto parts and accessories. "It's almost impossible to reach any other conclusion than this is the impact of vehicle tariffs manifesting itself in import volumes," Jackson Wood, director of industry strategy for global trade intelligence at Descartes Systems Group, told Autonews . "My read on this is that importers are pausing, hoping that more favorable tariff conditions will emerge in the medium term." The data above doesn't take land-based shipments from Canada or Mexico into account—only sea-based imports from places like Asia and Europe. Still, it paints a worrisome picture for inventory levels in the US. Before tariffs went into effect in April, automakers loaded up on dealership inventory, hoping to avoid raising prices for buyers. Now, predictably, companies are waiting to see if anything changes before they start shipping cars again. But they can only wait so long. According to Kelly Blue Book , automakers nationwide had an average of 66 days worth of inventory—that is, the number of days before they sell every car sitting on the lot—before running out. It won't be long before automakers will have to start shipping cars en masse again to keep up with demand. And if tariff policies don't change, that'll mean big price hikes. More on Tariffs Bentley Has You Covered On Tariffs—For Now Volvo CEO: Customers Must Pay Tariff Costs, Not Us Get the best news, reviews, columns, and more delivered straight to your inbox, daily. back Sign up For more information, read our Privacy Policy and Terms of Use . Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
