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Customs warehouses are booming as U.S. businesses turn to a 'hope and prayer' strategy of waiting out the tariff war

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Customs warehouses are experiencing a surge in business due to the ongoing U.S.-China trade war, as companies use these facilities to store goods and delay paying tariffs, hoping for a resolution or reduction in tariffs. The strategy, often referred to as "hope and prayer," involves storing products in customs warehouses for up to five years without paying duties, allowing businesses to wait out potential changes in trade policy. This approach has led to increased demand for customs brokerage services and has benefited companies like Amazon, which uses these warehouses to manage inventory and mitigate the impact of tariffs. However, the effectiveness of this strategy depends on the duration of the trade war and future trade policies, leaving businesses in a state of uncertainty.

Read the Full Fortune Article at:
[ https://fortune.com/article/customs-warehouses-booming-businesses-hope-prayer-strategy-tariff-war/ ]