High and unpredictable tariffs are creating mounting challenges for Vermont businesses that rely on international trade. Sudden changes to tariff policy can disrupt supply chains, inflate costs, and complicate sourcing decisions, especially for small and mid-sized manufacturers. As part of BDCC’s mission to support the economic resilience of Southern Vermont, BDCC is working to identify tools that can help businesses navigate these pressures.
For several months BDCC has been actively collaborating with the Vermont Department of Economic Development (DED) and fellow Regional Development Corporations (RDCs) to assess the potential for reestablishing and expanding Foreign Trade Zone (FTZ) access across Vermont. This includes evaluating the feasibility of reactivating the former Brattleboro Foreign Trade Zone (BFTZ), which is no longer in operation, and exploring opportunities for broader regional coordination.
As part of this effort, BDCC has been working with original BFTZ stakeholders and regional businesses to understand the practical implications of an FTZ in today’s complex trade environment. We are also partnering with a nationally recognized law firm specializing in FTZ policy and compliance to assess how recent executive orders, and the evolving federal tariff landscape impact the core benefits of FTZs, including duty deferral, reduction, and elimination.
Despite ongoing volatility in global trade rules and tariff policies, BDCC continues to explore how an FTZ could serve businesses in the Windham Region. We are in communication with U.S. Customs to assess operational capacity and are working with DED and other RDCs to evaluate the potential for shared services or statewide FTZ solutions that offer scale and efficiency. This work has strong support from Vermont’s federal delegation. In May, Senator Peter Welch convened a roundtable of Vermont manufacturers and economic development organizations, including BDCC and Windham-based businesses, at Orvis in Manchester to discuss the impacts of tariffs and global trade uncertainty. The conversation reinforced the need to evaluate all available tools for insulating Vermont’s manufacturers and exporters from escalating costs and instability.
To inform this effort, BDCC is seeking input from businesses in the Windham Region that currently import or export goods. Feedback on tariff exposure, sourcing countries, and product mix will help determine whether a modern FTZ structure could offer meaningful value to Vermont companies under current and future conditions.
If your company would like to be part of this conversation, please complete our short FTZ Feasibility Survey.
About BDCC
The Brattleboro Development Credit Corporation (BDCC) is a private, nonprofit economic development organization with the mission of investing in the drivers of the regional economy so that people, businesses, and communities in Southern Vermont can thrive. BDCC serves as the State of Vermont’s certified Regional Development Corporation (RDC) for the greater Windham County area, including Windham County and the towns of Readsboro, Searsburg, Winhall, and Weston. BDCC is one of 12 RDCs throughout Vermont. BDCC activity is made possible in part by a grant from the State of Vermont through the Agency of Commerce and Community Development. For more information, visit https://brattleborodevelopment.com.
