As trade policy shifts with the Trump administration, importers are bracing for the return of steep tariff hikes. For businesses that rely on global supply chains, these changing duty rates can create serious financial challenges. One effective way to manage this uncertainty is by strategically deferring duty payments.

At Red Arrow Logistics, we help our clients adapt to complex trade environments by offering innovative supply chain solutions, including the use of duty deferral programs, to protect cash flow and minimize risk.

What Is Duty Deferral?

Duty deferral allows importers to delay the payment of import duties, taxes, and fees on goods brought into the U.S. until a later date. This can be achieved through mechanisms like bonded warehouses, Foreign Trade Zones (FTZs), or certain customs programs.

Why Defer Duty Now?

With the potential return of aggressive trade policies and higher tariffs on Chinese and other foreign-made goods, deferring duty can offer businesses significant advantages:

1. Reduced Financial Risk

Tariff rates can change quickly and without much notice. Deferring duty payments helps shield your company from immediate exposure to rising costs, allowing you to wait out uncertain policy swings.

2. Increased Financial Flexibility

Delaying duty obligations gives businesses more time to assess and adapt to new trade rules. This flexibility can be crucial for maintaining stable operations while avoiding sudden hits to cash flow.

3. Better Budgeting and Forecasting

By deferring duties, companies can better align their financial planning with actual trade policy outcomes. This makes budgeting more predictable and avoids costly surprises if duties increase unexpectedly.

Stay Ahead of the Curve

The future of U.S. trade policy may remain uncertain, but your response doesn’t have to be. Red Arrow Logistics offers tailored logistics and customs solutions to help you leverage duty deferral programs and reduce your exposure to tariff volatility.

Whether you’re exploring bonded warehouse options or considering FTZ strategies, our experienced team can help you evaluate the best approach for your business.