GSP saved American companies $65 million in July, bringing year-to-date savings in 2020 to $472 million. GSP benefits companies in every state – the map below shows the overall value of January-July 2020 GSP imports (in blue) and tax savings (in red) by state – yet is scheduled to expire on December 31. 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 seven months of 2020, American companies paid up to $220 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 that likely tied to Covid-19 impacts, but imports were clearly rebounding by July.
Companies that import under GSP and want Congress to renew it before December 31 should add their name to our free GSP supporter list. The Coalition continues to seek information from companies on how Covid-19 and/or GSP country suspensions have impacted them.