GSP saved American companies $78 million in August, the most since March as imports continue to recover from the Covid-19 pandemic and recession. In the first 8 months of 2020, GSP saved American companies $551 million.
GSP benefits companies in every state – the map below shows the overall value of January-August 2020 GSP imports (in blue) and tax savings (in red) by state. Yet GSP is scheduled to expire on December 31, 2020. Companies and workers around the country need Congress to pass legislation reauthorizing GSP to avoid millions of dollars in new taxes per day in 2021.
GSP savings are down from 2019 due (largely) to country suspensions. In the first eight months of 2020, American companies paid up to $257 million in extra tariffs due to lost GSP for India, Turkey, and Thailand. The graph below shows monthly savings and estimated costs for each country suspension. There were declines in March-June tied to Covid-19 impacts, but imports are starting to rebound. Had those country-specific benefits not been suspended, GSP savings in August could have been at near-record levels – and provided much-needed tax relief to companies struggling to deal with Covid-19 impacts.
Companies that import under GSP and want Congress to renew it before December 31 can take any/all of the following steps to help advocate for renewal:
- use our Contact Congress tool to email Senators/Representatives about the importance of GSP renewal
- add your name to our free GSP supporter list
- answer our Covid-19 and/or GSP country suspensions impact surveys
- Submit a video on why Congress must renew GSP
- Follow the Coalition for GSP on Twitter and amplify our GSP renewal efforts