Miami-based logistics infrastructure company WTDC was founded by the Gazitua family in 1977 as Miami’s first General Order Warehouse, although the family was already running a successful freight forwarding business called Florida International Forwarders (FIF) at the time of WTDC’s founding. Over the years, WTDC added additional services such as bonded warehousing, customs brokerage, and transportation licenses and is a recognized market leader worldwide. Sean Gazitua, son of the founder and the current president & CEO of WTDC, shares his insights and concerns about the current state of supply chain issues and how his company is dealing with them.
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As president and CEO of a worldwide logistics company and foreign trade zone, it is imperative that I stay informed of global events that could affect customers. Thus far in 2025, United States tariffs have been a pivotal factor in international trade and commerce. Let’s take a closer look at what effect those tariffs may have on the Duty Free and Travel Retail industry from a logistics perspective, the U.S. tariffs that have been introduced or implemented this year, and how companies are using Foreign Trade Zones to defer duties and taxes.
Duty Free and Travel Retail products moving through the U.S. in-bond will not be subject to duties and taxes. However, companies that have a global travel retail division and also a domestic U.S. operation will feel the impact of duties on imported products and materials for consumption in the U.S. This may lead to decisions for the importer to either absorb the tariffs, pass along the increases, or find suppliers from different countries.
Tariffs, or customs duties, are a tax paid to the government by the importer. Commonly used to balance trade by protecting local industries, tariffs make imported goods more expensive in order to stimulate spending on domestic products. Tariffs can also be used to stimulate revenue, combat unfair trade practices, such as when a country subsidizes production of a product, or be wielded to influence accordance with policy as we have seen so far in 2025.
On February 4, a 10% tariff on all Chinese goods imported to the U.S. went into effect. The goal of the tariffs is for Chinese officials to halt the flow of chemicals from China that are later manufactured into illicit drugs such as fentanyl. China, in turn, announced retaliatory duties scheduled to go into effect in March. During the last week of February 2025, an additional round of 10% was being discussed by the U.S.
Over the past month, numerous tariffs have been introduced or implemented. U.S. President Trump has expressed an interest in placing a tariff on all imported products. Tariffs have been introduced then revoked based on a country’s willingness to fall in line with his immigration policies, as in the case of Colombia. Mexico and Canada will see 25% tariffs implemented after a one-month delay on March 4th, with Canadian energy imports at a 10% tariff, as the administration seeks cooperation to cease the flow of fentanyl into the U.S. At the time of publishing, these tariffs were scheduled to go into effect. New or returning tariffs are scheduled or being proposed for aluminum, steel, automobiles, copper, lumber, pharmaceuticals, and semiconductors, among others.
U.S. Foreign Trade Zones, such as WTDC, assist companies with mitigating tariffs by allowing goods to be imported, stored, processed, or assembled without immediately incurring customs duties. FTZs are secure areas under U.S. Customs and Border Protection (CBP) supervision and are considered outside CBP territory. FTZs have streamlined customs documentation and procedures, reducing paperwork and improving the time it takes to bring cargo from the port or airport into the FTZ.
In an FTZ, companies can defer, reduce, or even eliminate tariffs on goods that are re-exported or used in manufacturing. WTDC has tailored its operation to meet the unique needs of the Duty Free and Travel Retail industry, allowing for the flow of foreign products to be handled in Miami without the importer subject to duties and taxes, as all cargo for this industry is export-only. WTDC also manages worldwide transportation of products in-bond so as not to be subject to duties and taxes.
I welcome any questions you may have about trade, tariffs, and logistics. We hope you have an amazing Summit of the Americas and hope to catch you on the exhibition floor!
