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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GSP expiration cost hit record $113 million in March

Written on May 4, 2022 in USA

Based on an analysis of new U.S. Census Bureau data, American companies paid at $113 million in tariffs on product claiming GSP in March due to GSP expiration – the highest level ever despite the fact that March is generally not a big import month. The $300 million in tariffs paid in Q1 2022 due...

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