From January-July 2021, American companies paid at least $565 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.

July was the most expensive month of GSP expiration yet for 12 states: Georgia, Hawaii, Iowa, Kansas, New Hampshire, Rhode Island, South Carolina, Utah, Vermont, Virginia, Washington, and Wisconsin. In Rhode Island, tariffs costs in July were more than the previously three months combined. Tantalum metals used primarily to manufacture electronic components from Kazakhstan and Christmas lights from Cambodia – the two products driving the Rhode Island increase – show the diverse impacts of GSP expiration.

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.

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, March, April, May, and June.

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

Despite the slight overall decline, some states such as West Virginia and Nevada saw very large increases in GSP imports and savings compared to February 2016, as shown in the graphic below.

GSP saved West Virginia companies $91,000 in February, up $36,000 (65 percent) compared to one year earlier. Chemicals and mining tools from India and electrical conductors from Ecuador contributed most to West Virginia’s GSP increases.

GSP saved Nevada companies $330,000 in February, up $128,000 (63 percent) compared to one year earlier. Plastics accessories (e.g., wallets, glasses cases) from India, flourides (chemicals) from Thailand, and tungsten concentrates from Bolivia contributed most to Nevada’s GSP increases.

In addition to West Virginia and Nevada, companies in 10 other states saw GSP savings increase by at least 20 percent, including: Colorado, Connecticut, Delaware, Florida, Michigan, New Hampshire, New Mexico, Rhode Island, Virginia, and Wisconsin.

Savings on GSP imports from Kenya increased by 153 percent compared to February last year. New Jersey companies’ purchases of nuts were among the top GSP imports from Kenya. GSP eliminated about $265,000 in import taxes on gelatin in February, with about of those savings on imports from Iowa.

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.

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.

The infographic below highlights some other key facts and figures about the GSP program for 2016.

We’ll be rolling out lots of new GSP-related data in the coming weeks and months as we work to educate Congress on the importance of renewing GSP before its scheduled expiration on December 31, 2017.

If you have not yet done so, please add your name to the free 2017 GSP Supporter List so the Coalition for GSP can show the broad support for renewal across the country.

Overall, the value of GSP imports and tariff savings both increased by more than 10 percent compared to May 2015. Some states, such as Arkansas and Rhode Island, saw very large increases in GSP imports and savings compared to May 2015, as shown in the graphic below.

In Arkansas, GSP imports and savings both increased by 37 percent compared to one year earlier. Vanadium oxides and hydroxides from South Africa, firearms from Turkey, and transmission parts from Thailand contributed most to Arkansas’ GSP increases.

In Rhode Island, GSP imports increased by 79 percent and savings from GSP by 145 percent compared to one year earlier. Costume jewelry from Thailand, glass fibers from Sri Lanka, and metal picture frames from Turkey contributed most to Rhode Island’s GSP increases.

Imports from Cambodia jumped by 121 percent, led by increased imports of window blinds by companies in California. GSP eliminated about $109,000 in import taxes on buses in May and has waived more than $400,000 on imports of buses in the first five months of 2016.

In 2015, companies in the five states saved about $55 million in import tariffs (i.e., taxes) because of the GSP program. Companies in Maryland saved about $24 million, the highest among the five states, as shown in the graphic below. Average tariffs waived because of GSP ranged from 2.6 percent in Delaware to 6.8 percent in Rhode Island – the highest in the country.

More than 60 companies in those states, including about 50 small businesses, are among the 700+ companies and associations on the GSP supporter list. There are multiple supporter list companies in each state, including about 2 dozen in Pennsylvania.

These companies were hit hard when Congress last allowed GSP to expire. For example, COLE-TUVE in White Marsh, Maryland paid about $75,000 in extra taxes and lost an estimated $250,000 in sales because higher prices forced it to reduce inventories. This had a direct impact on its employees, as retirement contributions and raises were frozen during the expiration.

McGuire Manufacturing, a 20-person manufacturer in Cheshire, Connecticut, was unable to hire new workers during the expiration. According to President Mike McRoberts: “As a result of GSP expiration, we have allowed attrition to reduce our workforce by two full-time positions. I’d like to replace them, and would do so immediately if Congress renews GSP, but I can’t right now.”

Similarly, a chemical company in Pennsylvania (that requested anonymity) estimated at least $250,000 in lost sales because of price increases associated with GSP expiration. As a result, it put off hiring two additional staff.

For all the tough talk about trade from presidential candidates, the experiences of these companies (and many others) show the the negative impact on American companies and workers caused by higher U.S. trade barriers.