GSP expiration makes high “Back to School” tariffs even worse

Written on August 29, 2022 in USA

On Friday, the National Taxpayers Union published data showing how Back To School Season Highlights High Cost of Import Taxes, including the great graphic below. Sadly, even those high tariffs are understated because they don’t account for the impacts of GSP expiration. NTU’s selected products faced at least $120 million in extra tariff...

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NEW SURVEY: GSP expiration costs

Written on July 29, 2022 in USA

Key pieces of the China competition bill passed Congress this week, but without GSP renewal (or any of the other trade provisions). While GSP importers must plan for months more of GSP expiration, the Coalition is considering a number of potential next steps (e.g., new legislative requests, importer sign-on letter, September fly-in to lobby for...

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GSP expiration tariffs: “putting salt on a wound”

Written on June 27, 2022 in Cambodia

Woombikes USA in Austin, Texas is among the many companies harmed by GSP expiration. According to Woombikes’ response to our new survey on GSP and inflation, the company has paid over $1.9 million in extra tariffs due to GSP expiration on children’s bikes, spare parts, and accessories. Children’s bikes face 11% tariffs without GSP...

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GSP importer: “We are getting killed between increases in factory prices, add-on of duty, and increasing freight costs”

Written on June 15, 2022 in USA

One of the first responses to our new survey on GSP and inflation came from Bueno of California in Fullerton, CA, which imports handbags, wallets, travel accessories, totes, and backpacks. The 20-person company has paid nearly $2 million in extra tariffs due to GSP expiration. “We are getting killed between increases in factory prices, add-on...

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NEW SURVEY: Inflation and GSP

Written on June 13, 2022 in USA

Last week we wrote about two-way links between GSP and inflation. We believe global inflation may be raising the cost of GSP imports – leading to higher tariffs, more U.S. inflation, and a risk of permanent GSP loss due to “CNLs.” We want to hear from you. If you’re a GSP importer, can you please...

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GSP loss -> inflation; inflation -> GSP loss (and repeat)

Written on June 10, 2022 in USA

This morning, BLS reported U.S. inflation of 8.6% in May, the highest rate since 1981. It is not just a US issue – earlier this week the OECD doubled its 2022 inflation estimate for member countries from 4.5% to 9%. GSP expiration raises prices, which in turn contributes to higher US inflation. At the same...

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