According to new research from the Coalition for GSP, expiration of the Generalized System of Preferences (GSP) program cost American companies at least $65 million in February 2021. Congressional authorization for GSP expired on December 31, 2020.
In the first two months of expiration, American companies paid at least $135 million in extra taxes as a result of GSP expiration. The map below shows estimated tariffs for products claiming GSP paid by state.
The products facing the most new tariffs vary greatly by state:
- In New York, gold jewelry faced $2.4 million in new tariffs.
- In Florida, roses faced another $2.2 million in new tariffs due to GSP expiration (on top of $1.8 million in January) in the run-up to Valentine’s Day.
- In Texas, nearly $800,000 in tariffs were paid on plywood.
- In Pennsylvania, nearly $400,000 in tariffs were paid on colored pencils.
- In Ohio, $200,000 in tariffs were paid on wire harnesses used in auto manufacturing.
The data on tariffs paid is a conservative estimate, and the real figure likely is millions of dollars more. Why? Estimates only capture products that continued to claim GSP despite expiration. Yet imports of many products that traditionally get GSP did not claim it in February. Tariffs paid on those imports still would be eligible for refunds in the event of a retroactive renewal, but importers would need to file manual requests.
GSP expiration is already costing American jobs and raising prices for American companies that need inputs and consumers that purchase finished goods. It is critical that Congress renew GSP – with refunds for tariffs paid – as soon as possible. To help the Coalition for GSP educate policymakers on who is hurt by expiration (and how), companies are strongly encouraged to: