Based on an analysis of new U.S. Census Bureau data, expiration of the Generalized System of Preferences (GSP) program cost American companies at least $1.15 billion, including another $99 million in January 2022. Those figures are the absolute minimum: companies have paid over $200 million in tariffs on potentially GSP-eligible tariffs that didn’t claim GSP (but may be eligible for post-renewal refunds).
Imports into 40 states (plus Puerto Rico) paid at least $1 million in tariffs due to GSP expiration. The map below shows estimated tariffs paid for products claiming GSP by state.
In January, companies in Florida paid over $11 million – driven largely by roses from Ecuador coming in before Valentine’s Day. In addition to Florida, January 2022 was the most expensive month yet of GSP expiration for imports into Washington (+$3 million in tariffs), Indiana (+$2.1 million), Arizona (+$1.3 million), Utah (+$1.1 million), Connecticut (+$780,000), Delaware (+$534,000) and New Mexico (+$43,000).
It is critical that Congress renew GSP – with refunds for tariffs paid – as soon as possible. If you’re a GSP importer hurt by expiration, please and our impact survey here. As always, no company-specific details will be published without permission.