Tariff Shifts and the Future of Southern California Logistics

1/6/2026

Located within a Foreign-Trade Zone and proximity to Los Angeles and Long Beach ports make the Inland Empire wine country region uniquely positioned for changing tariff dynamics.

Temecula, CA – December 22, 2025

As changing U.S. tariff structures begin reshaping global supply chains, the Inland Empire wine country region is emerging as a strategic logistical environment. Long known for tourism and agricultural assets, the region is increasingly being recognized, not only for its proximity to the Ports of Los Angeles and Long Beach, strong distribution infrastructure, and rapidly expanding warehousing capacity, but for its location in a Foreign-Trade Zone (FTZ).

Being located within an FTZ allows for deferred or reduced duty costs on imports. With tariff adjustments influencing everything from routing decisions to inventory strategy, Southern California logistics stakeholders are preparing for shifts in cargo volume, commodity mix, and customs-processing demand. Together, the San Pedro Bay Ports handle roughly 31% of all U.S. containerized imports arriving by sea, leaving manufacturers and importers to reevaluate distribution models in response to cost changes.

At just 90 miles from the San Pedro Bay port complex, the Inland Empire wine country area sits at a unique logistical crossroads providing strategic freeway access to the 15, 215, and 60 freeway corridors, proximity to major rail-served distribution centers, and more economical industrial warehouse real estate, as well as the benefits that come with being in an FTZ.

“The wine country region also offers a growing talent base for supply chain, customs, and freight operations. Foreign-Trade Zone benefits eliminate export duties, making the region ideal for businesses working to navigate the new tariffs,” said Connie Stopher, Executive Director, SoCal Wine Country EDC. “This is a moment of opportunity. Our region offers the FTZ benefits, space, accessibility, and workforce that Southern California needs to stay competitive as the global trade landscape evolves.”

This combination places the region in a unique position to absorb increased cargo-handling needs as companies reassess where they stage inventory amid tariff costs and longer lead times. Local customs brokers and logistics executives working within the Wine Country EDC are reporting a surge in inquiries related to tariff classification, alternative sourcing, and compliance strategy.

“In today’s volatile trade environment, Riverside County’s Foreign-Trade Zones offer businesses the flexibility and risk mitigation they need to remain competitive in a global market. By allowing companies to defer, reduce, or eliminate customs duties on imported goods, including relief from tariffs on components that are later re-exported or incorporated into finished products, FTZs can significantly lower operating costs and improve cash flow. Riverside County, in partnership with ITC-Diligence, a consulting service designed to support the complexities of global trade, supports companies through the FTZ permit accreditation process and provides free business consultations, as well as bi-monthly Tariff Update webinars, to deliver timely insights and practical guidance. We encourage businesses to take full advantage of these resources,” said David Harlow, President of ITC-Diligence and Riverside County’s FTZ consultant. “As tariffs drive supply chain restructuring, the Inland Empire wine country region stands to capture new investment, expand its logistics ecosystem, and support the statewide economy.”

About Southern California Wine Country EDC
The Southern California Wine Country EDC is a nonprofit economic-development organization serving Temecula, Menifee, Lake Elsinore and southwestern Riverside County. For more than 30 years, the EDC has helped businesses relocate, expand or start up in one of Southern California’s fastest-growing and most strategic regions. Leveraging partnerships, incentives and a business-friendly environment, the EDC is committed to fostering sustainable growth, innovation and quality of life. SoCalWineCountryEDC.com

Key Takeaways

The Southern California Wine Country region is increasingly being recognized for its location in a Foreign-Trade Zone. Being located within an FTZ allows for deferred or reduced duty costs on imports.
The Inland Empire wine country region is emerging as a strategic logistical environment for commerce.