Three Alternatives to Bypass Trump’s Tariff Walls

The business community, especially in the EU, is working intensively to minimize the costs of impending tariffs, particularly as the three-month grace period granted by Trump ends on July 9, 2025. Business advisors recommend three main strategies against the new international tariff map imposed by U.S. President Donald Trump since April 9, 2025. First, companies are making changes to their supply chains to find alternative purchasing and production options. Second, customs warehouses are rapidly developing. Third, factories within Foreign Trade Zones are increasing. According to a report from Handelsblatt, Donald Trump aims to send another message to his trading partners regarding tariff disputes. The 90-day tariff suspension, intended by the U.S. president for negotiations, expires on July 9. However, before this grace period ends, promised agreements with many countries are still missing. Trump accuses others, stating it has been more difficult than expected to reach deals due to foreign governments being ‘spoiled because they have stolen from us for 30, 40 years.’ Thus, while the threat of high tariffs looms again next week, many companies are now trying to help themselves by developing strategies to minimize customs costs. Business consultants familiar with U.S. legislation, like Cindy Allen, provide significant assistance. ‘There are various strategies to reduce customs burdens,’ says the trade expert at Trade Force Multiplier consulting firm. However, the exact strategies will largely depend on the size, industry, and type of company, notes a former director of a U.S. Customs and Border Protection (CBP) sub-office. Alan Wolff, former Deputy Director-General of the World Trade Organization (WTO), explains that the burden does not always need to be as heavy as the numbers suggest. Companies can explore these three primary options: 1. Supply Chains – Companies analyze their supply chains to find alternative purchasing and production options. Some switch suppliers based on lower tariff weights depending on country of origin. Advisors highlight a peculiarity of U.S. customs law called the ‘first sale rule,’ which allows importers to use the first sale price in multi-stage supply chains for customs duty calculations, potentially leading to significant savings. 2. Customs Warehouses – The uncertainty surrounding tariffs before the July 9 deadline has recently led to increased interest in customs warehouses. Goods stored here can remain essentially duty-free for up to five years. Importers pay tariffs only when releasing goods from the warehouse, not upon arrival at the port. However, space in customs warehouses typically costs around 1.5 times more than regular storage. 3. Foreign Trade Zones – Some companies in the U.S. rely on Foreign Trade Zones (FTZs), allowing them to bypass tariffs entirely if using the U.S. as a production location. Factories declared as FTZs enable companies to import parts, process them, and re-export them with significantly reduced or eliminated duties. This option has existed for about 100 years but gained prominence under Trump’s tariff policies. According to Jeffrey J. Tafel, President of the National Association of Foreign-Trade Zones (NAFTZ), there has been a sharp increase in membership during the 2024 presidential elections, reaching a historical high. However, creating such an installation is complex, often taking a year or more. German companies like BMW have long used this model, confirming its Spartanburg, South Carolina plant operates under FTZ status.