GSP expiration led to $1.7 billion in extra tariffs on American companies through June 2022
Tariffs paid by American companies due to expiration of the GSP program keep going up up up. Based on an analysis of new U.S. Census Bureau data, American companies paid at least $113 million in tariffs on products claiming GSP in June due to GSP expiration – and $1.7 billion in new tariffs from January...
Continue readingNEW SURVEY: GSP expiration costs
Key pieces of the China competition bill passed Congress this week, but without GSP renewal (or any of the other trade provisions). While GSP importers must plan for months more of GSP expiration, the Coalition is considering a number of potential next steps (e.g., new legislative requests, importer sign-on letter, September fly-in to lobby for...
Continue readingGSP expiration led to $1.7 billion in new tariffs on American companies through June 2022
Tariffs paid by American companies due to expiration of the GSP program keep going up up up. Based on an analysis of new U.S. Census Bureau data, American companies paid at least $113 million in tariffs on products claiming GSP in June due to GSP expiration – and $1.7 billion in new tariffs from January...
Continue reading“We slowed our purchases from GSP countries – and China was the beneficiary of that”
A simple statement from a GSP importer that shows why GSP reauthorization must be a part of any “China competition bill” like the one that House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer hope to pass in July. Yet with the clock ticking until August recess – and then November elections – there...
Continue readingGSP expiration tariffs: “putting salt on a wound”
Woombikes USA in Austin, Texas is among the many companies harmed by GSP expiration. According to Woombikes’ response to our new survey on GSP and inflation, the company has paid over $1.9 million in extra tariffs due to GSP expiration on children’s bikes, spare parts, and accessories. Children’s bikes face 11% tariffs without GSP...
Continue readingGSP importer: “We are getting killed between increases in factory prices, add-on of duty, and increasing freight costs”
One of the first responses to our new survey on GSP and inflation came from Bueno of California in Fullerton, CA, which imports handbags, wallets, travel accessories, totes, and backpacks. The 20-person company has paid nearly $2 million in extra tariffs due to GSP expiration. “We are getting killed between increases in factory prices, add-on...
Continue readingNEW SURVEY: Inflation and GSP
Last week we wrote about two-way links between GSP and inflation. We believe global inflation may be raising the cost of GSP imports – leading to higher tariffs, more U.S. inflation, and a risk of permanent GSP loss due to “CNLs.” We want to hear from you. If you’re a GSP importer, can you please...
Continue readingGSP loss -> inflation; inflation -> GSP loss (and repeat)
This morning, BLS reported U.S. inflation of 8.6% in May, the highest rate since 1981. It is not just a US issue – earlier this week the OECD doubled its 2022 inflation estimate for member countries from 4.5% to 9%. GSP expiration raises prices, which in turn contributes to higher US inflation. At the same...
Continue reading$118 million in GSP expiration costs in April set record for 2nd month in a row
Tariffs paid by American companies due to expiration of the GSP program are high and rising fast. Based on an analysis of new U.S. Census Bureau data, American companies paid at least $118 million in tariffs on products claiming GSP in April due to GSP expiration, eclipsing the (then) record $113 million paid in March....
Continue reading17+ months of GSP expiration (and 3 billion reasons not to shift sourcing from China)
With the calendaring turning to June, GSP expiration now enters its 18th month, the 2nd longest lapse in history. GSP has often expired and been renewed retroactively, but Congress usually acts within 6 months. That Congress would allow GSP to remain expired for so long during a global pandemic, skyrocketing shipping costs, and spiking inflation...
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