Companies importing goods from China into the US are rapidly converting warehouses into bonded facilities to defer paying tariffs until the goods are sold.
The US has over 1,700 bonded warehouses where imported goods can be stored without immediate customs duty payment. With the current 30 per cent tariff on Chinese shipments, this move allows businesses to manage funds more effectively amidst trade policy volatility.
Many bonded warehouses are now at full capacity, and prices for space have skyrocketed. According to WarehouseQuote, bonded storage space now costs four times more than standard storage rates, up from twice the cost in early 2024.
Companies are applying to expand bonded space, but the process can take three to six months and cost thousands to six figures, depending on the location and security measures required.
Industry experts believe this rush to bonded warehouses is unprecedented, driven by the uncertainty surrounding US tariffs on Chinese goods. Some companies are betting that raised tariffs will be a short-term policy, while others are seeking to avoid past mistakes of accepting levies and investing in alternative sources.
The demand for bonded warehouses may fluctuate depending on tariff policies. As Jacob Roseburrough, Warehouse says, “By the time warehouses achieve bonded status, these additional tariffs might be gone, and demand for bonded space might not be there.”
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