HAGERSTOWN, MD (January 16, 2025) – The Washington County Department of Business and Economic Development‘s Foreign Trade Zone (FTZ) #255 is urging local businesses to prepare for potential significant changes to import tariffs. Reports indicate that the incoming Trump Administration may issue up to 100 Executive Orders starting January 20, 2025, potentially increasing import tariffs by 20% to 60%, depending on the country of origin.
“These changes could have a profound impact on businesses of all sizes, regardless of their current tariff rates. Substantial cost increases on imports may directly affect your bottom line,” said Jonathan Horowitz, Director of the Washington County Department of Business and Economic Development.
Linda Spence, Financial Programs Administrator, emphasized the importance of preparation: “While these potential changes may create challenges, there are several strategies available to mitigate their impact. However, the most effective approach will depend on each business’s unique circumstances.”
Recommended Actions for Businesses:
1. Wait and See: While businesses can wait for further announcements on January 20, immediate tariff changes could require rapid adjustments.
2. En Route Shipments: File Customs consumption entries for goods expected to arrive after January 20 to lock in current tariff rates upon arrival.
3. Leverage FTZ Strategies:
- File Customs entries on all FTZ on-hand goods to avoid unexpected tariff increases.
- Change FTZ goods to Privileged Foreign (PF) status to mitigate exposure, though this carries risks.
4. Pharmaceutical Production: Note limited options for inverted tariff savings within FTZs, potentially impacting cost management.
5. FTZ Weekly Entry: Explore CBPF 3461 weekly estimates with experts to reduce tariff exposure.
6. Compliance with the FTZ 5-Day Rule: Ensure all entered merchandise is shipped within five days, or secure special permissions for production FTZs to avoid penalties.
7. Assess Origin of Goods: Verify the origin of FTZ-produced goods to confirm tariff obligations.
Assistance Available
Businesses are encouraged to contact their foreign trade zone consultant or legal counsel to navigate these changes effectively.
For a list of foreign trade zone consultants or additional guidance, contact:
Linda Spence
Financial Programs Administrator
Washington County Department of Business and Economic Development
The Washington County Department of Business and Economic Development remains committed to supporting our local businesses through these evolving economic conditions.
###
