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A foreign trade zone is a physical site located near a U.S. port of entry where goods can be stored, assembled, modified, or repackaged duty free. Fees are collected only after a product leaves the zone and enters U.S. commerce. Companies that have operated inside Foreign Trade Zones include Ford, GM and Chrysler as well as General Electric, Intel and Sony. Since tariffs were announced interest in foreign trade zones has surged. But a rule change by the Trump administration has drastically changed the way FTZs operate. CNBC traveled to Virginia and New York to find out companies use foreign trade zones to mitigate custom duties and tariffs and how the change to FTZ operations will impact businesses. Chapters: 0:00- 2:19 Introduction 2:20 - 7:18 Chapter 1. Foreign trade zones 7:19 - 12:05 Chapter 2. Bonded warehouses 12:06 - 15:45 Chapter 3. Inverted tariff Produced and Shot by: Shawn Baldwin Reporter: Lori Ann LaRocco Edited by: Evan Lee Miller Animation: Andrea Schmitz, Jason Reginato Senior Director of Video: Jeniece Pettitt Additional Camera: Carlos Waters Additional Footage: Getty Images » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Watch CNBC on the go with CNBC+: https://www.cnbc.com/WatchCNBCPlus About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Do you want to buy a home but don’t know where to begin? Take CNBC’s new online course How to Buy Your First Home. Register today and use coupon code EARLYBIRD for an introductory discount of 30% off $97 (+taxes and fees) through July 15, 2025: https://cnb.cx/3STNNhr Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC on Threads: https://cnb.cx/threads Follow CNBC News on X: https://cnb.cx/FollowCNBC Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC #CNBC How U.S. Companies Are Mitigating Trump Tariffs With Foreign Trade Zone