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

A recent report based on a survey over about 125 importers – How GSP Termination would Hurt American Businesses & Workers – profiled numerous companies importing under GSP from Turkey. For example:

World Confections, Inc. in Maplewood, New Jersey has been family owned and operated for three generations since it was established in 1952 and imports confections from Turkey under GSP. According to Vice President Scott Cohen: “There is a chance that our company will go out of business without the support of GSP benefits. Without the ability to competitively purchase from our GSP supplier, imports would decrease, job creation would halt, and worker pay would stagnate. It is dire for our company that Turkey retain GSP benefits.”

Green Boy Group in Redondo Beach, California is a start-up supplying non-GMO and organic food ingredients, primarily to specialty food manufacturers in the Los Angeles area. Most of its imports are not available in the United States. It has invested significant amounts of money to develop suppliers in Turkey, some of which become non-competitive immediately without GSP, meaning there is no way for Green Boy Group to recoup those costs.

Karran USA in Vincennes, Indiana is an 18-employee company that designs and develops kitchen sinks. In 2018 it hired two new warehouse staff and one new marketing person at its 200,000 square foot sales, manufacturing, and distribution center in central Indiana – and planned more hires for 2019. Loss of GSP for Turkey will raise prices, reduce sales, and likely put at least some of those plans on hold.

Power & Energy Usa Inc. in Doral, Florida grew its sales of GSP-eligible batteries from Turkey by more than 10% in 2018, allowing it to hire new workers while simultaneously exporting more throughout the Americas. In the ultra competitive battery market, losing the 3.5% duty preference will affect its revenues and future growth potential.

Kishek International in Costa Mesa, California imports fine gold jewelry, mostly from Turkey. GSP led to 7-figure tariff savings for the 7-person company in 2018. Kishek invested GSP savings in a new manufacturing facility to increase future US production and hired a new accountant. But domestic manufacturing depends on obtaining duty-free materials under GSP. Instead of making more jewelry in the United States with materials imported duty-free, Kishek may be forced to relocate all production overseas.

Kervan USA in Whitehall, Pennsylvania is an 8-person company that saved hundreds of thousands of dollars due to GSP for Turkey on gummy candies of well-known US brands and licensed characters (e.g., Crayola, Sunkist, Curious George, Peanuts Snoopy). While the candies are from Turkey, Kervan is promoting – and adding value to – these US brands. Growth has been strong enough that Kervan was considering opening its own warehouse that would provide jobs for 10+ people, but that will be on hold without GSP.

If there was a silver lining to the announcement, it was that no action was taken against India at this time. On May 2, a bipartisan group of 25 House Members wrote to USTR Robert Lighthizer asking for such a delay for India. While there have been press reports that USTR would not take action before India’s elections, moving ahead on only Turkey is the clearest sign yet that the Trump administration will continue negotiations with India.

In the first two months of 2018, companies paid $145 million. That includes only products that claimed GSP despite the expiration. Companies have until September 19 to claim refunds manually, so actual refunds paid for January-February likely will be higher than $145 million.

GSP imports were up by 8 percent compared to February 2017. Had companies not been forced to pay them, tariff savings would have increased by 17 percent. Arizona and Utah were among the states with the biggest increases in tariffs paid because of expiration, as shown in the graphic below.

GSP expiration cost Arizona companies $422,000 in February. Potential savings were up $238,000 (130 percent) compared to one year earlier. Chemicals from India, fashion accessories and conveyor belts from Thailand, and tires from Indonesia contributed most to the increases.

GSP expiration cost Utah companies $313,000 in February. Potential savings were up $120,000 (62 percent) compared to one year earlier. Bicycles from Cambodia and travel goods and compressor pumps from the Philippines contributed most to the increases.

In addition to Arizona and Utah, companies in 20 other statessaw potential GSP savings increase by at least 20 percent, including: Alaska, California, Colorado, Florida, Georgia, Idaho, Indiana, Kansas, Maine, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, Oregon, South Dakota, Washington, and Wyoming.

Potential savings on GSP imports from Ukraine increased by 195 percent compared to February of last year. Chocolate products into Pennsylvania accounted for nearly a third of imports from Ukraine. Companies paid about $1.1 million in tariffs on plywood, led by importers in Florida.

*** REMINDER: GSP GOES BACK INTO EFFECT APRIL 22 BUT PRODUCT- AND COUNTRY-SPECIFIC BENEFITS MAY BE AT RISK AS PART OF ADMINISTRATIVE REVIEW PROCESS.***

While GSP has been renewed through 2020, we encourage GSP program users to sign up for the free GSP Supporter List to receive periodic updates on such issues such as refunds and the Annual Review process.

By comparison, the most tariffs paid in a single month during the last 2-year expiration was “just” $61 million. So the stakes for a swift, retroactive renewal are much, much higher for American companies this time around.

GSP imports were up by 18 percent compared to January 2017. Had companies not been forced to pay them, tariff savings would have increased by 21 percent. Montana and South Carolina were among the states with big increases in GSP imports getting slapped with new tariffs, as shown in the graphic below.

GSP expiration cost Montana companies $46,000 in January. Potential savings were up $38,000 (514 percent) compared to one year earlier. Travel goods from Philippines and fishing lures from Cambodia contributed most to the increases. As noted recently, Montana Fly Company in Colombia Falls had to lay off 3 workers due to higher tariffs associated with GSP expiration.

GSP expiration cost South Carolina companies $1.8 million in January. Potential savings were up $607,000 (49 percent) compared to one year earlier. Plastic resins from South Africa, motorcycles from Thailand, and plaited goods (baskets, wickerwork) from India contributed most to the increases.

In addition to Georgia and North Carolina, companies in 19 other states (plus DC and Puerto Rico) saw potential GSP savings increase by at least 20 percent, including: Alaska, Colorado, Delaware, Florida, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Missouri, Nebraska, Nevada, New Jersey, New Mexico, Texas, Vermont, Virginia, and Wyoming.

Potential savings on GSP imports from Tunisia increased by 115 percent compared to January of last year. Maryland companies alone imported $3.4 million in olive oil claiming GSP in January. GSP would’ve eliminated about $1.2 million in import taxes on monumental and building stone in January had it been in place. Illinois was among the largest importing states.

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

The House passed GSP renewal legislation in February, but the Senate must pass legislation for GSP benefits to resume. Please use our Contact Congress tool to write your Senators about GSP renewal; answer our brief survey on how GSP expiration impacts you, and/or sign up for the free GSP supporter list to show the broad support for renewal.

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

GSP saved Georgia companies $3.9 million in December, up $1.3 million (49 percent) compared to one year earlier. Metal products from Brazil, luggage from Thailand,  and chemicals from India contributed the most to Georgia’s GSP savings increases.

GSP saved North Carolina companies $2.0 million in December, up $577,000 (39 percent) compared to one year earlier. Chemicals from the Philippines, furniture fittings from Thailand, and wood products from Indonesia contributed most to North Carolina’s GSP increases.

In addition to Georgia and North Carolina, companies in 26 other states saw GSP savings increase by at least 20 percent, including: California, Connecticut, Florida, Idaho, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wyoming.

Savings on GSP imports from Indonesia increased by 31 percent compared to December of last year. California companies’ alone imported $4.6 million in silver jewelry under GSP in December. GSP eliminated about $1.5 million in import taxes on mangoes and guavas in December. About two-thirds of those savings were on imports into New Jersey.

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

The House passed GSP renewal legislation in February, but the Senate must pass legislation for GSP benefits to resume. Please use our Contact Congress tool to write your Senators about GSP renewal; answer our brief survey on how GSP expiration impacts you, and/or sign up for the free GSP supporter list to show the broad support for renewal.

Last week, the House overwhelming approved GSP renewal legislation (HR 4979) but a vote of 400-2. The statements in support of GSP renewal were as strong as the final vote. Several Members highlighted how GSP savings can help companies lower costs, hire workers, and invest in their businesses and employees:

Ways and Means Chairman Kevin Brady (R-TX): “In Texas alone, our local job creators saved more than $76 million. Of course, this is money that our businesses can instead use to hire more workers, expand, and innovate. But think about what it means for families.”

Rep. Ralph Norman (R-SC), who helped spearhead last October’s House letter urging GSP renewal: “In 2017, producers in my state saved $17 million on GSP imports through reduced tariffs. There savings translate directly to how much companies can reinvest in their businesses and their employees.”

Rep. Jackie Walorski (R-IN): “GSP helps American manufacturers both big and small cut input costs, which in turn lowers prices for consumers. Companies saved $865 million in import duties in 2017 alone.”

Other went further and highlighted specific companies that would benefit from GSP renewal, including GSP supporter list companies TRInternational and Kona Bicycle in Washington, Primetac in New Jersey, and TopFlite Mfg. in Florida.

Ways and Means Trade Subcommittee Chairman Dave Reichert (R-WA): “In my home state of Washington, GSP saved companies about $11 million in import duties in 2017 — up 30 percent from 2016. 

As just one example, TRInternational, a small but quickly growing veteran-owned chemical distributor in Seattle, relies on GSP to obtain certain chemical raw materials at globally competitive prices.  Our last renewal of GSP in 2015 allowed TRI to hire more employees and increase its capital expenditures.  Many of TRI’s customers are U.S. manufacturers, and TRI’s use of GSP to obtain raw materials at lower prices also makes these manufacturers more competitive. 

For TRI, and for other Washington companies like Kona Bicycle that use the GSP program, their employees, and American consumers, GSP provides significant benefits.”

Ways and Means Trade Subcommittee Ranking Member Bill Pascrell (D-NJ): “Since the expiration of the program, small and medium-sized enterprises have borne the burden of higher costs of products imported under the GSP program.

Consider Primetac, located in Little Ferry, New Jersey, a family-owned business from my district that uses GSP-eligible goods to support their industrial packaging business. When GSP last expired, Primetac was forced to raise prices to compensate for new import taxes. This was no small increase, as the company estimates it paid about $1.5 million in new tariffs during the program’s lapse.

This legislation would provide benefits retroactively to GSP-eligible imports, so that small and medium-sized American companies like Primetac can take full advantage of the benefits of GSP and boost their business’s productivity. It is critical that we act quickly to renew this already expired program to support these firms and their employees.”

Rep. Carlos Curbelo (R-FL): “In 2017, U.S. importers enjoyed nearly $865 million in savings on import duties under the GSP program. During the same year, my home state of Florida had $1.2 billion of imports covered by the program and a total of $59 million in savings on import duties—Mr. Speaker, that’s about a 40 percent increase in savings from 2016.

I want to share the story of Mr. Bruce Price, a small business owner in my district who would benefit from renewing the GSP program. He recently told my office that he expects savings in the range of $25,000 to $45,000 per year if the program is renewed. For Mr. Bruce, that amount of savings goes a long way and makes a major difference in his business decision to hire more workers or hold off.

I commend the work that the Ways and Means Trade Subcommittee has done to reinforce our commitment to free and fair trade partnerships around the world. I urge my colleagues to vote in favor of H.R. 4979 to help Mr. Bruce and other small business owners hire more workers.”

Clearly, Members of Congress want to know about the companies impacted by GSP and its expiration. As the GSP Coalition continues to advocate for swift, retroactive GSP renewal, we strongly encourage companies to sign up for our free GSP supporter list and answer our expiration impacts survey.

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.

Thomas Snyder of Warehouse Associates in Indianapolis, Indiana, which supplies components to large American equipment manufacturers, expects speculative investments to decline and possible benefits changes for warehouse workers if GSP remains expired. He added: “Where to find $600k? Major customers are not accepting the pass-through asking us to find savings elsewhere.”

Another company (that asked not to be named) said it will reduce the profit margin by 5-10% on impacted products and still expects sales to decline by 5% because some price increases will be necessary. Lower margins and lower sales is not a recipe for growth: the small business may cancel plans to add 3,000 square feet to its facility and 2-3 more employees this year if GSP is not renewed in early 2018.

Those companies are just three of the nearly 400 American companies and associations that sent a letter yesterday to Congressional leaders urging swift, retroactive renewal of the GSP program.

GSP expired on December 31 and companies must now pay $2-3 million per day in extra taxes while awaiting a potential congressional reauthorization. The last time GSP expired, Congress did not renew it for nearly 2 years and companies paid about $1.3 billion in tariffs.

Despite broad, bipartisan support in both the House and Senate, GSP renewal did not get a vote in 2017. Earlier this week, a White House official reportedly said the Trump Administration supports a three-year GSP extension and would like to see Congress act “this this year.”

Companies and associations that wish to be included on future letters (or stay informed of similar initiatives) should add their name to the free GSP supporter list here. Companies can also use our contact Congress tool to email your Representatives and Senators about the need to renew GSP.

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.

• That is the highest reported monthly savings since October 2008.
• GSP imports were up by 17 percent – and tariffs savings were up by 21 percent – compared to August 2016.
• Year-to-date savings from GSP are up $72 million, or $9 million per month, over the first 8 months of 2016.

All that despite the fact that August savings are likely significantly understated: official U.S. government data show no claimed GSP benefits for imports of travel goods from countries such as Thailand and the Philippines in July or August despite a recent program expansion.

Put differently: GSP program usage is booming. Some states such as New Jersey and Texas saw much larger increases in GSP imports and savings compared to the previous year, as shown in the graphic below.

GSP saved New Jersey companies $7.4 million in August, up over $2.3 million (45 percent) compared to one year earlier. Travel goods from Burma and Cambodia, precious metal compounds from South Africa, and stone products from Brazil contributed most to New Jersey’s GSP increases.

GSP saved Texas companies $7.1 million in August, up over $1.7 million (32 percent) compared to one year earlier. Industrial machinery from Thailand, PET resin from Brazil, and stainless steel flanges from India contributed most to Texas’ GSP increases.

In addition to New Jersey and Texas, companies in 17 other states saw GSP savings increase by at least 20 percent, including: Alabama, Alaska, Delaware, Florida, Indiana, Louisiana, Maine, Michigan, Mississippi, Missouri, Montana, Nevada, Virginia, West Virginia, and Wisconsin.

Savings on GSP imports from Cambodia increased by 307 percent compared to August of last year. New York companies’ purchases of travel goods from Cambodia alone resulted in $740,000 in GSP savings. As companies gear up for the holiday season, GSP eliminated about $1.4 million in import taxes on Christmas lights in August, with over $250,000 of those savings coming from imports into Washington.

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

Please use our Contact Congress page to write your Members today about the need to renew GSP today. 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.