March was the most expensive month yet of GSP expiration: the $88 million in extra tariffs paid far exceeded the $65-$70 million paid in January and February. In the first three months of expiration, American companies paid at least $225 million in extra taxes as a result of GSP expiration.

Companies in 28 states paid at least $1 million in tariffs in the first quarter of 2021 due to GSP expiration. The map below shows estimated tariffs for products claiming GSP paid by state.

In Oregon, the March tariff costs exceeded January and February combined. It wasn’t just one product. March was the most expensive month yet for Oregon GSP importers of optical equipment and coconut flour from the Philippines, sweeteners and plywood from Indonesia, rubber gloves from Thailand, and wooden doors from Brazil. And it wasn’t just Oregon: companies in Delaware, South Dakota, Vermont, and Wyoming all paid more in March than in January and February combined.

As is so often the case, GSP expiration contributes to larger national issues such as surging lumber costs (WSJ: Lumber Prices Break New Records, Adding Heat to Home Prices, CNN: New homes cost $36,000 more because of an epic shortage of lumber). In the first quarter, the GSP tariff impact on plywood and veneers grew 118% from $4.8 million in 2020 to $10.5 million in 2021. (In 2020, these were savings, but in 2021 they must be paid due to expiration.) The tariff impact nearly tripled compared to 2019. Plywood and veneers ranked 6th in terms of GSP tariff impacts so far in 2021, up from 25th in 2019. It’s not just plywood and flooring-related products: GSP imports of wooden doors are up 40% in 2021 and builders joinery are up 96%.

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:

• 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

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.

Those dollars and cents impact peoples lives and livelihoods: Sugarpod laid off a staff member and cut worker benefits due to higher costs. It scaled back other investments as well, including canceling plans to expand its product lines.

In addition to the $30,172.01 that is unavailable to Inplac for investing in operations, the company also lost sales due to GSP expiration. Factoring in 4.2% import taxes make it difficult to compete in the low-margin market for plastic bags.

As noted previously, there are no refunds for sales not made, meaning companies can never truly “recoup” all the losses from GSP expiration. The longer Congress allows GSP to remain expired, the greater the potential damage for companies and workers alike.

Both Sugarpod and Inplac provided this info by answering our GSP expiration survey, which you can complete here. As always, no company-specific information will be published without explicit permission.

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

GSP saved New Hampshire companies $246,000 in May, up over $150,000 (170 percent) compared to one year earlier. Optical equipment from the Philippines and Sri Lanka, ice skates from Thailand, and meter parts from India contributed most to New Hampshire’s GSP increases.

GSP saved New Mexico companies $103,000 million in May, up $47,000 (84 percent) compared to one year earlier. Aluminum products from India, jewelry from the Philippines, and rubber gloves from Thailand contributed most to Virginia’s GSP increases.

In addition to New Hampshire and New Mexico, companies in 13 other states saw GSP savings increase by at least 20 percent, including: Alabama, Delaware, Florida, Indiana, Iowa, Kansas, Louisiana, Montana, Nebraska, Oklahoma, Oregon, Texas, and Virginia.

Savings on GSP imports from Bosnia and Hezegovnia increased by 180 percent compared to May of last year. Louisiana companies’ purchases of silicon accounted for about 40 percent of GSP imports from the country. GSP eliminated about $120,000 in import taxes on keyboards in May, with about a three-quarters of those savings on imports into California.

More monthly GSP import and savings highlights are on our Graphics page.

REMINDER: GSP expires at the end of 2017. Click here to learn about ways to take action and support GSP renewal this year.

The map below shows the overall value of year-to-date 2017 GSP imports (in blue) and tax savings (in red) by state.

This map will be updated monthly as new trade data become available and the most up-to-date version will be available at all times on our Graphics page. These posts highlight select states, products, and countries contributing to increases in January, February, and March.

REMINDER: GSP EXPIRES AT THE END OF 2017. Click here to learn about ways to take action and support GSP renewal this year.

NOTE: Tariffs on GSP-eligible may increase on January 1. Show Congress that GSP renewal is important to your organization by joining the GSP Supporter List here today. Sign up is free.

The companies reported importing from 7 GSP countries and exporting to at least 18 countries around the world. (Some reported whole regions such as “Asia” as opposed to individual countries.) About half of the companies export some of their GSP-eligible products.

For example, GSP saved Labo America in Fremont, California about $100,000 in 2016. The 10-person company not only imports microscopes from India, it exports to GSP beneficiary countries such as Brazil and Sri Lanka, FTA partners including Mexico and Peru, and other countries including Japan, Malaysia, and Vietnam.

GSP saved Samick Music Corporation in Gallatin, Tennessee (just outside of Nashville) about $130,000 in 2016. The company’s 14,000-square foot headquarters and 200,000-square foot warehouse are used for piano manufacturing as well as piano and guitar warehousing and servicing. Samick imports guitars and pianos from Indonesia under GSP and exports pianos from Tennessee to China, Germany, Indonesia, and Japan.

GSP expiration is exactly 8 months away. If you import under GSP, please join our GSP Supporter List and help us build the case for GSP renewal. There are no costs associated with joining the list.

GSP Supporter List companies added the week of April 24, 2017:

• American Omni Trading in Houston, Texas
• Bakner Manufacturing in Canton, Georgia
• Best Flowers in San Bruno, California
• BTR International, Inc. in New York, New York
• Charming Shark in Osprey, Florida
• Colony Brands in Monroe, Wisconsin
• Continental Foods Inc. in Cerritos, California
• Decotone Surfaces LLC in Garwood, New Jersey
• Eucatex North America in Alpharetta, Georgia
• Fusion Gourmet, Inc. in Rancho Dominguez, California
• International Dunnage in Thunderbolt, Georgia
• JBH Intertrade in Garden City, New York
• JSA, Inc. in Aventura, Florida
• Kirkland Associates, Ltd. in McMinnville, Oregon
• KOUBOO LLC in Laguna Beach, California
• Labo America inc. in Fremont, California
• Marta Howell Inc. in Las Vegas, Nevada
• Metal Marketplace International in Philadelphia, Pennsylvania
• Novita in Monrovia, California
• Samick Music Corp. in Gallatin, Tennessee
• South Florida Gold in Miami, Florida
• Summit Specialty International in Alpharetta, Georgia
• Venture Lighting International, Inc. in Twinsburg, Ohio

*** Tariffs on GSP imports are scheduled to go up on January 1. By the time that feels “close,” it may be too late to make a difference in Congress. So if you import under GSP and don’t see your organization here, please add it here today. ***

The companies are based in 11 different states and most are small businesses (Panasonic North America certainly is not). Their imports are as varied as their locations: Engineered Components Company imports cap screws from Thailand; Galaxy Sports imports gloves from Indonesia; Global Chemcorp imports pigments and dyes from India, and Sugarpod Naturals imports dietary supplements from the Philippines.

Two companies – B&C Technologies and Fab-Line Machinery – are among those featured on our Company Profiles page.

The next potential GSP expiration is less than 9 months away. If you import under GSP, be sure to join our free GSP Supporter List so we can continue making the case for GSP renewal well in advance of the pending expiration date.

GSP Supporter List companies added the week of April 10, 2017:

• Andre Prost, Inc. in Old Saybrook, Connecticut
• B&C Technologies LLC in Panama City Beach, Florida
• Bolcof Port Polyers / Calsak Plastics in Azusa, California
• Engineered Components Company in Elgin, Illinois
• Fab-Line Machinery, LLC in Nashville, Tennessee
• Galaxy SPorts, Inc. in South Bend, Indiana
• Global Chemcorp, LLC in Charlotte, North Carolina
• Karran in Vincennes, Indiana
• Organik Kimya US, Inc. in Burlington, Massachusetts
• Panasonic Corporation of North American in Newark, New Jersey
• Sugarpod Naturals in Hillsboro, Oregon
• TRI-K Industries Inc. in Denville, New Jersey
• YGI Group in New York, New York
• Zhong Ya Chemical (USA) Ltd. in Edison, New Jersey

Some states, such as Arizona and Minnesota, saw particularly large increases in GSP imports and savings compared to January 2016, as shown in the graphic below.

GSP saved Arizona companies $706,000 in January, up $215,000 (44 percent) compared to one year earlier. Semiprecious stones from Brazil and Madagascar, chemicals from India, and plastic statues and decorative items from the Philippines contributed most to Arizona’s GSP increases.

GSP saved Minnesota companies $413,000 in January, up $95,000 (30 percent) compared to one year earlier. Aluminum structures from Thailand, optical lenses from Indonesia and Thailand, and measuring instruments from the Philippines contributed most to Minnesota’s GSP increases.

The increase in GSP savings for American companies has been shared broadly. In addition to Arizona and Minnesota, companies in 16 other states saw GSP savings increase by at least 20 percent, including: Alabama, Alaska, Arkansas, Colorado, Connecticut, Idaho, Louisiana, Maine, New Hampshire, New York, North Dakota, Oregon, Pennsylvania, Rhode Island, South Dakota, Utah, Vermont, and Wisconsin.

Savings on GSP imports from Turkey increased by 23 percent compared to January last year. Georgia companies’ purchases of tires were among the top GSP imports from Turkey. GSP eliminated about $100,000 in import taxes on air bags and parts in January, with nearly all of those savings on imports from Thailand into Utah.

REMINDER: GSP EXPIRES AT THE END OF 2017. Click here to learn about ways to take action and support GSP renewal this year.

Some states, such as Alabama and Ohio, saw particularly large increases in GSP imports and savings compared to December 2015, as shown in the graphic below.

GSP saved Alabama companies $451,000 in December, up $147,000 (48 percent) compared to one year earlier. Silicone from South Africa, PET resin from Brazil, and tungsten ores from Bolivia were among the products contributing most to Alabama’s GSP increases.

GSP saved Ohio companies $2.7 million in December, up $459,000 (21 percent) compared to one year earlier. Ferrochromium from Turkey, machining centers from Brazil, and pesticides from India contributed most to Ohio’s GSP increases.

In addition to Alabama and Ohio, companies in 18 other states saw GSP savings increase by at least 20 percent, including: Alaska, Arkansas, Connecticut, Delaware, Indiana, Iowa, Kansas, Louisiana, Maine, Mississippi, New Hampshire, New Mexico, New York, North Dakota, Oregon, Pennsylvania, Rhode Island, and Texas.

Savings on GSP imports from Egypt increased by 11 percent compared to one year earlier. New York’s purchases of olive oil were among the top GSP imports from Egypt. GSP eliminated nearly $900,000 in import taxes on mangoes and guavas in December, with California accounting for more than a quarter of those savings.

REMINDER: GSP EXPIRES AT THE END OF 2017. Click here to learn about ways to take action and support GSP renewal this year.

Overall, GSP saved U.S. companies $667 million in 2016 through November. GSP savings are up about $58 million, or 10 percent compared to the first 11 months of 2015.

Some states, such as Oregon and Indiana, saw particularly large increases in GSP imports and savings compared to November 2015, as shown in the graphic below.

In Oregon, GSP imports and savings each increased by about 50 percent compared to one year earlier. Wooden doors from Brazil, Indonesia, and South Africa; lighting fixtures from Thailand, and food products from Ecuador all contributed to Oregon’s GSP increases.

In Indiana, GSP imports and savings each increased by about 35 percent compared to one year earlier. Motor vehicles parts and polycarbonates from Thailand and engine parts and electric motors from the Philippines contributed to Indiana’s GSP increases.

Savings on GSP imports from Paraguay increased by 148 percent compared to November last year. Increased imports of sugar contributed most to this increase. GSP eliminated about $237,000 in import taxes on ceramic mugs in November, with more about $47,000 saved on imports into Florida alone.

REMINDER FOR ALL GSP PROGRAM USERS: GSP EXPIRES AT THE END OF 2017.

Please click that link to learn about how to get involved in the Coalition for GSP’s renewal activities this year.