FTZs used to allow manufacturers to import goods tariff-free and use those imports to manufacture products with lower tariff rates. The Trump administration removed that benefit last year.
Production, new orders, imports and exports all increased, according to the latest Purchasing Managers Report from ISM. But according to the Labor Department, the economy has shed 66,000 manufacturing jobs over the past year.
Energy and transportation are two areas where costs are rising for stores like Home Depot, Walmart, and Target, but raising prices could turn off an increasingly strapped consumer.