Costs are rising for American companies that have depended for decades on GSP benefits for key supplier countries. American companies paid over $10 million in new tariffs through June to the Administration’s choice to terminate GSP for Turkey. That is on top of the $25 million in tariffs paid in June on previously GSP-eligible products from India. The decisions played a major role in GSP savings plummeting to $66 million in June.
Impacts from the Turkey decision were felt throughout the country, as shown by the map below.
Among states hit the hardest were Missouri ($682,000 in tariffs paid) and Kentucky ($484,000), despite not generally being among the top states in overall GSP usage. In Missouri, new tariffs paid were almost exclusively on auto parts such as stampings, brakes, and motor vehicle locks. In Kentucky, the biggest impacts were on food products, followed by gaskets/mechanical seals.
Our April report – How GSP Termination would Hurt American Businesses & Workers – profiled numerous companies that expected (then-potential) GSP termination to hurt their American jobs and investment plans. If your company has been impacted by GSP termination for Turkey (or India), please use the button above to answer our impact survey.