Based on an analysis of new U.S. Census Bureau data released yesterday, expiration of the Generalized System of Preferences (GSP) program cost American companies at least $97 million in September 2021. Congressional authorization for GSP expired on December 31, 2020. Citing these growing costs along side Covid-related and supply chain challenges, over 300 U.S. companies and associations sent a letter to Congressional trade leaders urging GSP retroactive renewal in late September.

From January-September 2021, American companies paid at least $763 million in extra taxes as a result of GSP expiration. Imports into 38 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.

September was the most expensive month of GSP expiration yet for eight states: Alabama, Arizona, Georgia, Hawaii, Iowa, Nebraska, New Hampshire, Utah, and Virginia. GSP expiration costs have a direct, negative impact on American companies ability to remain competitive, particularly small businesses.

As one California small business owner emailed today: “Right now the Treasury department is enjoying about $750,000 of the money I paid for duty. At the same time I am having to borrow money to fund the business. Seems a bit wacky.”

It is critical that Congress renew GSP – with refunds for tariffs paid – as soon as possible. We strongly encourage GSP importers hurt by expiration to answer our new survey here. As always, no company-specific details will be published without permission.