Industrial Strength

Aerospace Industry Leans on Depression-Era Loophole to Ease Tariff Hit

Special customs zones allow companies to defer or avoid import taxes, but it's no replacement for a free-flowing supply chain.

Foreign trade zones can be a good option for mitigating tariffs for companies that export goods from the US, including GE. 

Photographer: Christopher Pike/Bloomberg
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With tariffs threatening to cripple what had previously been a largely duty-free supply chain, aerospace manufacturers are leaning on a little-known import loophole that dates back to the aftermath of America’s last destabilizing trade war.