GSP saved American companies $865 million in eliminated taxes. That is about $136 million, or nearly $13 million per month, more than 2016. Savings for July-October also don’t reflect program changes adding benefits for travel goods that could add another $5-10 million per month once data are revised.
GSP savings exceeded $1 million for 41 states plus Puerto Rico. Even without the expected upward revisions, more than 80% of U.S. states saw GSP savings grow over 2016. The map below shows the overall value of 2017 GSP imports (in blue) and tax savings (in red) by state.
Increased GSP savings were both large and widespread:
- New Jersey, Texas, and California each saw GSP savings jump by about $19 million, followed by a $17 million increase in Florida and a $11 million increase in New York.
- Savings more than doubled for Louisiana, Nebraska, and Delaware, while savings for Montana increased by 80% and savings for Alabama, Maine, and New Hampshire all increased by over 40%.
Some of these states (New Jersey, Nebraska, Florida, Maine, New Hampshire) are among the biggest beneficiaries of the travel goods expansion, meaning they also may see some of the largest upward savings revisions.
However, GSP expiration means American companies that have thrived in recent years are now being hit with millions of dollars in tariffs every day. Companies that import under GSP are strongly encouraged to join the GSP Supporter List and answer our survey on GSP expiration impacts.