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 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:

• write their lawmakers about GSP renewal with our Contact Congress tool
• 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

California accounts for more than a quarter of GSP savings, more than the next 3 states – New York, Florida, Texas – combined. Georgia, New Jersey, Ohio, Illinois, Washington, and Pennsylvania round out the top 10 states for GSP savings in 2020.

Estimated GSP savings for Colorado grew from $4 million in 2019 to $14 million in 2020, by far the largest increase. Estimated GSP savings also grew in Wisconsin (+$869,000), Arkansas (+$478,000), Washington (+$300,000), Delaware (+$73,000), and Wyoming (+$34,000). Estimated savings fell in all other states.

While Covid-19 had big impacts on GSP imports in the spring, declines were largely due to country suspensions. Excluding products impacted by country suspensions (e.g., India, Turkey, Thailand), most states’ GSP savings grew. For example, New York’s GSP savings grew by $15 million on non-impacted products but fell by $2.5 million overall due to country suspensions. Similarly, Texas’ savings GSP by $9 million on non-impacted products but fell by over $7 million overall.

Since GSP expired on December 31, American likely have paid about $110 million in tariffs that previously would’ve been “GSP savings.” 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

To be clear: they’re not paid by the countries and haven’t achieved any other U.S. policy goals and won’t be refunded if benefits are reinstated. They’re just $500 million in new taxes on U.S. companies at a time of unprecedented economic collapse and job losses.

Above is the breakdown of estimated tariffs paid by state. Imports into California and New Jersey have faced about $50 million in new tariffs each. Companies in traditional – or newfound – election battleground states Texas, Georgia, Florida, Pennsylvania, Michigan, and Ohio were all in the top 10 of tariffs paid, collectively paying up to $168 million in extra taxes.

And the taxes paid continue to climb.

The bulk of taxes – up to $366 million from June 2019 to August 2020 – have been paid on imports from India. The typical GSP importer from India had 14 employees and saved $100,000 per year. The burden falls overwhelmingly on small businesses struggling to make it through the pandemic, not the large multinational that can rapidly shift sourcing to suppliers in other countries. A report from April 2019 profiled many U.S. companies that would be hurt by termination for India (and others).

Up to $111 million in tariffs have been paid on imports from Turkey from May 2019 to August 2020. In similar comments submitted as part of the Turkey review, we noted the typical GSP importer from Turkey had 14 employees and saved about $150,000 annually. The Turkey review was launched over “market access” issues, but there were no known discussions about resolving issues. Instead, Turkey was “graduated” for sufficient economic development despite just entered a recession and having a GDP per capita that has now fallen in 5 consecutive years (the metric used to determine if countries should be graduated from GSP automatically).

Up to $23 million in tariffs have been paid on imports from Thailand from May 2020 to August 2020. Importers from Thailand tend to be a little bigger – but far from large! – with the typical importer having 28 employees and savings $183,000 annually under GSP. Most unhelpfully, the product facing the most tariffs appear to be face masks. Higher tariffs on face masks may not have seemed like a big deal when Thailand’s partial suspension was announced in October 2019, but we’re in a very different world with mask imports surging due Covid-19.

Potential GSP renewal legislation is highly unlikely to address country-specific issues, but the impacts from terminations are no less real for American companies than the prospects of expiration. If Congress considers changes to the GSP programs in the future, ensuring importers interests are not ignored in the country review processes should be a top priority.

GSP eliminates hundreds of thousands of dollars in tariffs annually on Cannon’s imports from Myanmar and Sri Lanka. The savings are passed along to Cannon’s customers, while helping those GSP countries “compete with giants like China.”

Watch CEO Frank Cannon explain how why its so important for Congress to renew GSP this year.

If you’re a GSP importer, submit your own video testimonial here.

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.

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.

The large increases come despite the fact that July, August, and September savings appear 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. So not only is GSP program usage is booming, it’s likely that data on savings will be revised up considerably in the near future.

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

GSP saved Oklahoma companies $316,000 in September, up $126,000 (67 percent) compared to one year earlier. Taps and cocks and artificial plants from India, rubber hoses from Turkey, and ceramic wares from Indonesia contributed most to Oklahoma’s GSP savings increases.

GSP saved Florida companies $4.8 million in September, up $1.3 million (36 percent) compared to one year earlier. Tropical plywood from Ecuador, travel goods from Burma and Cambodia, and motor boats from South Africa contributed most to Florida’s GSP increases.

In addition to Oklahoma and Florida, companies in 21 other states saw GSP savings increase by at least 20 percent, including: Alabama, Alaska, Arkansas, Delaware, Iowa, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, South Dakota, Texas, Virginia, West Virginia, and Wyoming.

Savings on GSP imports from Pakistan increased by 52 percent compared to September of last year. New York companies’ purchases of jewelry alone resulted in $179,000 in GSP savings. GSP eliminated about $500,000 in import taxes on valves in September, with about half of those savings coming from imports into Texas.

*** 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.

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

GSP saved Pennsylvania companies $2.8 million in July, up over $1.1 million (63 percent) compared to one year earlier. Chromium from Kazakhstan, candy from Thailand, and pesticides from India contributed most to Pennsylvania’s GSP increases.

GSP saved Iowa companies $715,000 in July, up over $283,000 (65 percent) compared to one year earlier. Pesticides from India, gelatin from Brazil, and rubber piping from Turkey contributed most to Iowa’s GSP increases.

In addition to Pennsylvania and Iowa, companies in 21 other states saw GSP savings increase by at least 20 percent, including: Alabama, California, Connecticut, Delaware, Florida, Georgia, Indiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, Oklahoma, Texas, Virginia, and Wyoming.

Savings on GSP imports from Sri Lanka increased by 51 percent compared to July of last year. Ohio companies’ purchases of activated carbon accounted for nearly $1.4 million GSP imports from Sri Lanka. GSP eliminated about $548,000 in import taxes on packaging plastics in July, with approximately a quarter of those savings coming from imports into South Carolina.

*** 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.