A $330 million tax hike? American businesses need an extension.
Tariffs are just another kind of tax. As many Americans scramble to finish up their taxes – and learn whether they’re due a refund (or something less pleasant) – there is another group of Americans for which May 4 may be a more important deadline: small businesses importing under GSP. These companies need an extension....
Continue readingOver 430 American Businesses and Associations Urge Congressional Leaders to Support Delay of GSP Withdrawal Citing Impact to their Businesses and Employees
After Congress voted nearly unanimously to renew GSP last year, American small businesses ask Congress to examine whether kicking countries that provide a third of the duty-free benefits out of the program reflects Congressional intent American businesses: “By lowering tariffs for American companies that import under GSP, it supports jobs and...
Continue readingGSP saved American companies $97 million in January 2019
GSP saved American companies $97 million in January. The savings increased by nearly $20 million from January 2018, and were about $11 million higher than average monthly savings in 2018 – already a record-shattering year. As recently as 2014/2015, GSP savings averaged just $56 million per month. But they have grown rapidly in recent years...
Continue readingNEW SURVEY: How would recent (and potential) GSP termination announcements impact you?
Last week, USTR announced its intent to terminate GSP benefits for India and Turkey. These could take effect as soon as early May. Announcements could come at any time on pending reviews for countries such as Thailand and Indonesia. In total, countries under review accounted for 63% of the $1+ billion in 2018 GSP savings....
Continue reading2018 GSP savings of $1.03 billion smash previous highs (but major potential cuts on horizon for many American companies)
GSP saved American companies a record $1.03 billion in 2018, smashing the previous high of $894 million set in 2017. Since Congress renewed GSP in 2015 following a multi-year lapse, annual GSP savings for American companies have increased by more than $350 million. Despite overwhelming congressional support for GSP renewal in 2018, the Trump...
Continue readingUSTR Announces Intent to Remove India and Turkey from GSP
On March 4, the Office of the U.S. Trade Representative announced its intent to terminate GSP for India and Turkey. According to the release: “India’s termination from GSP follows its failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors. Turkey&rsquo...
Continue readingSourcing shifts from China to GSP countries: Christmas lights
We recently posted that GSP savings shattered previous records in October and that growth was strongest for products where the Trump administration has imposed new 10-25% tariffs on imports from China. One very clear example: Christmas lights, whose imports from China became subject to a 10% tariff on September 24. For September/October, GSP import...
Continue readingNEW SURVEY: Are you importing more under GSP due to new China tariffs?
GSP savings shattered previous records in October. Growth was strongest for products where the Trump administration has imposed new 10-25% tariffs on imports from China. Was this a coincidence or the start of a long-term trend of companies shifting sourcing out of China and into GSP-eligible countries? We want to hear from you! The information...
Continue readingRecord GSP savings for American companies in October 2018 (due to tariffs on China?)
GSP saved American companies a record $105 million in October 2018. The savings exceeded the previous 10-year high – set just two months earlier – by $12 million (13%). GSP savings are on track to exceed $1 billion in 2018, likely for the first time in GSP’s 40-plus year history. As recently as 2015, GSP...
Continue readingNew data: GSP saved American companies significantly more than previously estimated in 2017
GSP saved American companies $894 million in 2017, an increase of nearly $30 million from past estimates. The new estimates are based on revisions and updates from the U.S. Census Bureau published in June and August, and details on some of the increases are below. Even before upward revisions, U.S. companies’ tax benefits from GSP...
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