The China/Section 301 diversion is real. So far in 2021, GSP imports are up 12% for products where Chinese imports face Section 301 tariffs but down 7% for products where Chinese imports don’t face any new Section 301 tariffs. It is impossible to know how much more GSP imports might be up (or Chinese imports down) if GSP expiration hadn’t forced American companies to pay tariffs for those products too. We wrote about how GSP renewal must be a part of any “China trade” conversation here.

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.

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.

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.

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.

From January-August 2021, American companies paid at least $666 million in extra taxes as a result of GSP expiration. Imports into 36 states (plus Puerto Rico) paid at least $1 million in tariffs from January-July 2021 due to GSP expiration. The map below shows estimated tariffs paid for products claiming GSP by state.

August was the most expensive month of GSP expiration yet both nationally and for 15 states: Alabama, Delaware, Georgia, Hawaii, Idaho, Maryland, Minnesota, Montana, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Texas, and Washington. Tariffs paid on imports into Minnesota were 84% higher than any previous month. For Pennsylvania and Georgia, tariffs paid were 53% and 27% higher than any previous month, respectively.

GSP expiration costs have a direct, negative impact on American workers:

• “GSP can be the difference between making a profit or a loss and without profits we obviously can’t increase wages and benefits” says Charlie Smith of BROSCO, a 4th generation, family-owned millwork distributor in Massachusetts and Maine. “Continued losses put all of our 360 workers’ jobs and livelihoods at risk.”
  
• “We are having challenges staying competitive“ says Ajay Kochhar of A&S Distributors in Salida, California. The 7-worker company has paid over $60,000 in extra taxes on food products from Fiji because of GSP expiration. “We can’t hire and give employees full benefits as this is a major increase.”
  
• “The tariffs when added to the rapidly escalating costs of containers have been devastating” says Sandra Colyer of Lily Koo LLC in Jamestown, North Carolina. “Employees laid off due to Covid are slowly being brought back, but return to work would occur more quickly if money was not being spent on tariffs.”

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.

In the first six months of expiration, American companies paid at least $480 million in extra taxes as a result of GSP expiration. Companies in 34 states (plus Puerto Rico) paid at least $1 million in tariffs from January-June 2021 due to GSP expiration. The map below shows estimated tariffs for products claiming GSP paid by state in that period.

June was the most expensive month of GSP expiration yet for 12 states: Alabama, Colorado, Delaware, Iowa, Maine, Maryland, Minnesota, New Hampshire, Ohio, Oklahoma, Rhode Island, and South Carolina. For Alabama, Colorado, and Delaware, each new month has been the most expensive one yet (e.g., June was more than May, which was more than April, which was more than March…).

The data on tariffs paid is a conservative estimate, and the real figure likely is higher. Why? Estimates only capture products that continued to claim GSP despite expiration. Yet imports of many products that traditionally get GSP have not claimed it in 2021. 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.

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. Companies that want to help the Coalition for GSP educate policymakers on the importance of GSP should also join the Coalition for GSP and/or add their name to the free GSP supporter list.

In the first five months of expiration, American companies paid at least $397 million in extra taxes as a result of GSP expiration. Companies in 32 states paid at least $1 million in tariffs from January-May 2021 due to GSP expiration. The map below shows estimated tariffs for products claiming GSP paid by state in that period.

May was the most expensive month of GSP expiration yet both nationally and for 19 states: Alabama, Colorado, Delaware, Georgia, Hawaii, Illinois, Kansas, Massachusetts, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Pennsylvania, South Carolina, and Virginia. In three states – Colorado, Kansas, and New Mexico – tariffs paid in May were at least double any of the previous four months.

While many believe the United States has low tariffs, Colorado companies have paid extra tariffs averaging 11.7% due to GSP expiration. Companies in Maine, Montana, New Hampshire, Utah, and Wisconsin have all paid extra tariffs average 7-10%.

The data on tariffs paid is a conservative estimate, and the real figure likely is higher. Why? Estimates only capture products that continued to claim GSP despite expiration. Yet imports of many products that traditionally get GSP have not claimed it in 2021. 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.

It is critical that Congress renew GSP – with refunds for tariffs paid – as soon as possible. Companies that want to help the Coalition for GSP educate policymakers on who is hurt by expiration (and how) should:

• join the Coalition for GSP
• add their name to the free GSP supporter list
• answer our very short survey on GSP expiration impacts to date

In the first four months of expiration, American companies paid at least $308 million in extra taxes as a result of GSP expiration. Companies in 31 states paid at least $1 million in tariffs from January-April 2021 due to GSP expiration. The map below shows estimated tariffs for products claiming GSP paid by state in that period.

April was the most expensive month of GSP expiration yet for 21 states – stretching from Florida to Alaska:

• GSP expiration costs have increased every month in Alabama, Colorado, Delaware, Idaho, Kansas, and Virginia.
• GSP expiration costs were about 4x higher in April than January in both Idaho and Delaware, and nearly 2x higher in Colorado and Alabama.
• The extra $2 million in tariffs paid in April by companies in Indiana is 40% higher than the average in the first three months of the year, while the $370,000 paid by companies in Nevada was 75% over the January to March average.

GSP expiration impacts are getting worse over time.

The data on tariffs paid is a conservative estimate, and the real figure likely is higher. Why? Estimates only capture products that continued to claim GSP despite expiration. Yet imports of many products that traditionally get GSP have not claimed it in 2021. 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:

• join the Coalition for GSP
• add their name to the free GSP supporter list
• answer our very short survey on GSP expiration impacts to date

Kicking India and Turkey out would cost American companies over $300 million annually in new tariffs paid. But in the case of India, it also could lead to (technically unrelated) new tariffs on US exports.

India repeatedly has delayed implementing retaliatory tariffs on US exports in response to US Section 232 steel and aluminum tariffs, despite notifying the WTO of its intent to do so last May. Top US exports on the list include apples, almonds, and chemicals. It has been understood that delays were tied to ongoing US-India talks over GSP and other trade irritants. Tariffs currently are scheduled to take effect on May 2

Indian press has reported that tariffs likely will be delayed again – at least for a little while. “India may not wait till May 15 for imposing the retaliatory duties but may come up with a separate notification for immediate implementation” if GSP benefits are terminated in the interim.

Based on 2018 trade data, the tit-for-tat escalation could lead to nearly $500 million in new tariffs on two-way, US-India trade. The table below shows the state-by-state breakdown.

Some states clearly would be hurt more by tariffs on imports: Georgia, New Jersey, Florida, Virginia, Texas. Others clearly could be hurt more by new tariffs on their exports: California, Washington, North Carolina, Alabama.

Of course, all the tariffs likely could be avoided if the President does not issue a proclamation terminating GSP benefits for India, as has been requested by over 430 US companies and associations, 25 associations; and Senators John Cornyn and Mark Warner.

Sometimes the best course of action is no action at all.

GSP savings exceeded $1 million for 41 states plus Puerto Rico. Even without the expected upward revisions, more than 80% of U.S. states saw GSP savings grow over 2016. The map below shows the overall value of 2017 GSP imports (in blue) and tax savings (in red) by state.

Increased GSP savings were both large and widespread:

• New Jersey, Texas, and California each saw GSP savings jump by about $19 million, followed by a $17 million increase in Florida and a $11 million increase in New York.
• Savings more than doubled for Louisiana, Nebraska, and Delaware, while savings for Montana increased by 80% and savings for Alabama, Maine, and New Hampshire all increased by over 40%.

Some of these states (New Jersey, Nebraska, Florida, Maine, New Hampshire) are among the biggest beneficiaries of the travel goods expansion, meaning they also may see some of the largest upward savings revisions.

However, GSP expiration means American companies that have thrived in recent years are now being hit with millions of dollars in tariffs every day. Companies that import under GSP are strongly encouraged to join the GSP Supporter List and answer our survey on GSP expiration impacts.

GSP imports were up by 14 percent – and tariffs savings were up by 25 percent – compared to November 2016. Year-to-date savings from GSP are up $118 million, or nearly $11 million per month, over the first 11 months of 2016.

November was the first month that U.S. government data started reflecting imports under the recent travel goods expansion (though companies have been saving since July 1). GSP savings on travel goods jumped about $5 million from October to November and July-October savings likely will be revised up by similar amounts.

Some states such as Louisiana and New York saw much larger increases in GSP imports and savings compared to the previous year, as shown in the graphic below.

GSP saved Louisiana companies $1.0 million in November, up $529,000 (104 percent) compared to one year earlier. Ferrochromium from South Africa, zinc from India, and tropical plywood from Cambodia contributed the most to Louisiana’s GSP savings increases.

GSP saved New York companies $7.2 million in November, up $2.3 million (46 percent) compared to one year earlier. Chemicals from India and Brazil, jewelry from Indonesia, and eye-wear from Thailand contributed most to New York’s GSP increases.

In addition to Louisiana and New York, companies in 25 other states saw GSP savings increase by at least 20 percent, including: Alabama, California, Delaware, Florida, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, North Carolina, Ohio, Oklahoma, South Carolina, South Dakota, Wisconsin, and Wyoming.

Savings on GSP imports from Egypt increased by 30 percent compared to November of last year. Texas companies’ alone imported $836,000 in activated clays under GSP in November. GSP eliminated about $10 million (!) in import taxes on travel goods in November, the first month the data reflect the recent expansion. About one-third of those savings were on imports into New Jersey.

*** REMINDER: GSP EXPIRED EFFECTIVE JANUARY 1.***

Please see our expiration post on what to do now to expedite any potential refund process and help renew GSP swiftly.

GSP imports were up by 22 percent – and tariffs savings were up by 28 percent – compared to October 2016. Year-to-date savings from GSP are up $102 million, or about $10 million per month, over the first 10 months of 2016.

And those reported savings remain significantly understated: official U.S. government data on GSP imports won’t start reflecting imports under the recent travel goods expansion until next month (though companies have been saving since July 1). Including the travel goods savings could add $5-$10 million more in benefits for American companies per month.

Some states such as Massachusetts and Kansas saw much larger increases in GSP imports and savings compared to the previous year, as shown in the graphic below.

GSP saved Massachusetts companies $792,000 in October, up $274,000 (53 percent) compared to one year earlier. Sports gloves from Thailand, optical equipment from the Philippines, and aluminum profiles from Turkey contributed the most to Massachusetts’ GSP savings increases.

GSP saved Kansas companies $277,000 in October, up $163,000 (143 percent) compared to one year earlier. Inorganic acids and pesticides from India, and rubber piping from Brazil contributed most to Kansas’ GSP increases.

In addition to Massachusetts and Kansas, companies in 26 other states saw GSP savings increase by at least 20 percent, including: Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Georgia, Indiana, Iowa, Maryland, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Texas, Vermont, Virginia, and Washington.

Savings on GSP imports from India increased by 30 percent compared to October of last year. Iowa companies’ purchases of carboxylic acids alone resulted in $282,000 in GSP savings. GSP eliminated about $698,000 in import taxes on aluminum foil in October, with $107,000 of those savings coming from imports into Illinois.

*** REMINDER: GSP EXPIRES IN JUST A FEW WEEKS.***

Please use our Contact Congress page to write your Members today about the need to renew GSP today (the letter text was updated December 5). That page makes it quick and easy to email both Senators and your Representative. All you need to do is: 1) enter your contact info, 2) enter a few sentences about your company/GSP imports, and 3) click send.