
Prof. Paul Vaaler Quoted by Star Tribune About Minnesota-Based DigiKey’s Status as a Foreign Trade Zone
Professor Paul Vaaler, John and Bruce Mooty Chair in Law and Business, was quoted by the Minnesota Star Tribune about electronic parts supplier DigiKey, based in Thief River Falls, Minnesota. The company makes about 25,000 shipments of electronic components and automation products daily from around the world with its distribution center being one of the largest foreign trade zones in the country. The Foreign Trade Zone Act was created by Congress in 1934 to help companies compete globally and encourage domestic employment. Today there are 260 foreign trade zones (FTZs) in the United States. Prof. Vaaler said that being a foreign trade zone has helped the company absorb tariffs set by the administration. He said, “Contracting with import brokers or working with foreign trade zones can help some with the cost shock that’s going to come with tariff and policy uncertainty.”