Tariffs Could Be Behind Surge in FTZ Production Filings

U.S. manufacturers are increasingly turning to foreign-trade zones (FTZs) to manage tariff exposure, with proposed FTZ production activity filings more than doubling in the first half of 2026 compared with the same period in 2025.

In a Law360 article, Sidley managing associate Ashlande Gelin and senior counsel Andrew Shoyer examine how evolving U.S. tariff policies are driving interest in FTZ production authority and what manufacturers should consider when evaluating FTZ strategies. The authors discuss how FTZs can help companies defer customs duties, eliminate duties on qualifying exports, and, in certain circumstances, reduce tariff costs. They also explore how restrictions on imported materials and FTZ production authorizations can affect sourcing decisions, U.S. manufacturing operations, and future investment.

Read the full article to learn more about how FTZs can help manufacturers navigate evolving tariff policies and the key considerations for companies seeking FTZ production authority.