As noted yesterday, GSP expiration cost American companies more than $56 million in September alone, and more than $110 million through the first two months. Not surprisingly, big states pay the most, but companies in all states are stuck paying higher taxes on previously duty-free goods. Here are the top 10 states ranked by the amount of tariffs paid from August 1 to September 30.
Because GSP import shipments are unpredictable, the impacts of expiration on different states can vary greatly from month to month. New taxes paid by North Carolina companies jumped 56% percent – from $2.0 million in August to $3.2 million in September – as a result of increased chemical shipments from India.
Several smaller states also saw big taxes hikes compared to August: North Dakota‘s GSP-related taxes more than tripled, led by ceramics used for shale gas drilling. Delaware‘s GSP-related taxes increased by 62 percent, while taxes paid by companies in Rhode Island, Vermont, and West Virginia all increased by more than 40 percent in September compared to August. Here’s one company that contributed to the jump for Rhode Island.
Of course, the impacts above only cover about half the time that GSP has been expired, so the actual costs are likely much higher. If you’re one of the companies forced to pay higher taxes because GSP expired, make sure to add your organization to the free GSP Supporter List here and take our latest expiration survey.
