Higher tariffs drive more interest in Orange County trade zone

Orange County’s foreign trade zone is back in the spotlight as companies face higher tariffs and rethink where to store, assemble and move imported goods. County Economic Development Director Steven Gross told legislators that interest in Foreign Trade Zone #37 has roughly doubled over the last year, a shift that points to fresh local demand tied to global trade pressure.

The appeal is simple: a business can bring foreign merchandise into the zone, store it, exhibit it, assemble it, manufacture it or process it without formal customs entry, and defer duty payment until the goods leave the zone for U.S. commerce. Items that are re-exported can avoid duty altogether. That makes the zone most useful for companies that import components or finished products and want to manage costs, inventory and cash flow while tariffs remain volatile.

Orange County’s zone has deep roots. It was established in May 1978 and approved by the federal Foreign-Trade Zones Board on May 4, 1978. It began with two sites, the Regal Distribution Center next to Stewart International Airport and the SAGE Building on the airport grounds in Newburgh, and later expanded in the mid-1980s to include Bally, Inc. and General Motor’s assembly plant in Tarrytown. After becoming largely dormant, county officials moved in January 2023 to reinvigorate it.

The county’s pitch now reaches beyond Stewart and Newburgh. The federal board lists Orange County as the grantee for Zone 037 and gives it a service area covering Dutchess, Orange and Rockland counties. That regional footprint matters because it lets Orange County market itself not just as a single industrial site, but as a logistics and distribution hub for firms across the Hudson Valley and beyond.

The broader trade context helps explain the renewed interest. The U.S. International Trade Administration said foreign-trade zones nationwide handled $964 billion in merchandise in 2024, exported $134 billion and employed 543,000 people in 381 active production operations. For Orange County, even a modest share of that activity could mean more warehouse space filled, more manufacturing work secured and more jobs tied to trucking, storage and processing.

Not every business will benefit equally. Companies that import heavily stand to gain the most from deferred duties, while firms with little foreign inventory have less reason to use the zone. But for Orange County’s industrial base, higher tariffs are turning FTZ #37 from an overlooked asset into a competitive tool, and the county’s next growth spurt may hinge on how many firms decide to use it.