Overall, the value of GSP imports and tariff savings both increased slightly compared to April 2015. Some states, such as South Carolina and New Hampshire, saw very large increases in GSP imports and savings compared to April 2015, as shown in the graphic below.

In South Carolina, GSP imports increased by 49 percent and savings from GSP by 48 percent compared to one year earlier. Plastics from Brazil, valves from Turkey, and motorcycles from Thailand contributed most to South Carolina’s GSP increases.

In New Hampshire, GSP imports increased by 317 percent and savings from GSP by 273 percent compared to one year earlier. Sporting goods from Thailand, optical devices from Sri Lanka and the Philippines, and parts for meters from India contributed most to New Hampshire’s GSP increases.

Imports from Bolivia jumped by 60 percent, led by increased imports of tungsten concentrates by companies in Nevada. GSP eliminated about $821,000 in import taxes on sugar and nearly 70 percent of those imports went to California.

NAM highlighted the impact on Momentive, a specialty chemicals and materials producer with a presence in 21 states, including manufacturing facilities in New York, Ohio, West Virginia, Florida, North Carolina, Oregon, Indiana and California. Roger McCrary, Momentive’s Vice President for Global Trade Management, noted the trade-offs that companies must make when Congress fails to renew GSP:

“Our ability to remain an innovative, cutting-edge American company requires access to affordable raw materials. With the increase in tariffs resulting from GSP’s expiration, we need to cut from other parts of our budget, such as R&D. That has an impact on our bottom line and future products.”

These trade-offs are faced by all companies, not just manufacturers. Some companies cut R&D. Others reduce purchases (and limit future profit potential), while others still must lay off workers. In each of these cases, though, the result is clear: even a temporary GSP expiration can have a lasting impact.

These new taxes are beginning to take a toll on importers. MG Golf in Irving, Texas is a small business that imports golf gloves from Indonesia. MG Golf has paid more than $40,000 in higher taxes since GSP expired and was forced to lay off one of its warehouse employees. If GSP is not renewed in the near future, the company expects additional cost-cutting efforts will be necessary.

Higher taxes are the only problem for importers: for a small jewelry fabricator in California, many regular customers have refused to place orders no one can be certain that tariffs will be refunded. In addition to the $160,000 in new import taxes, the company has lost an additional $500,000 in sales.

And each day these problems get worse. That’s one reason that 10 new companies have joined the GSP supporter list in the last week alone. If you’re being hurt GSP expiration, make sure to add your organization (it’s free) here and take our latest expiration survey.

Nearly 340 organizations in 41 states (plus DC) have now joined the supporter list. You can see them all here. If you’re not on the list but want Congress to renew GSP, be sure to add your name here so we can keep highlighting the importance of GSP to the different states and congressional districts.

Just as the arrival of September means something different for each person, the way GSP expiration impacts specific companies can also vary greatly. Past research has shown that the overall cost to American companies is about $2 million per day. We won’t know the actual value for the first month of expiration until the August trade data are released in a month or so, but we can look at responses from our August recess survey to some of the company-specific impacts.

For some, expiration was felt immediately. Vortex Optics in Middleton, Wisconsin paid $150,000 in new taxes while Congress was out of DC in August, and expects to pay another $100,000 this month if GSP remains expired. Those taxes are “putting a severe financial strain” on the 100+ employee business according to Vortex Optics President Daniel Hamilton.

For others like Far East American, a Los Angeles-based importer of tropical plywood, GSP expiration hasn’t hurt…yet. Far East American didn’t import any (previously) GSP-eligible shipments in August, but the company expects to pay more than $250,000 in tariffs in September because of GSP expiration.

Finally, there are others for which GSP expiration means no imports at all. One company in Florida (that wishes to remain anonymous) must bid in the next two weeks on business for 2014. Without GSP in place for imports from Indonesia, it cannot match prices of similar goods from China and Vietnam. As a result, GSP expiration likely will cause the two-person company to lose out on a $2 million contract – a huge deal for a very small company!

These are just a handful of the survey responses, and we’ll post more in the coming days and weeks. If you’re a GSP importer, please fill out this survey so we know how expiration is impacting your company (as you can see above, there’s an option to remain anonymous).

• California had the highest value of GSP imports ($2.8 billion) and tariff savings ($111 million) in 2012
• Rhode Island imports would’ve face the highest average tariffs (7%) without GSP
• 94% of imports from GSP-eligible countries did not enter duty free under GSP
• GSP eliminated tariffs on individual products that were as high as 37.8%
• Motor vehicle parts were the top product group imported under GSP in 2012
• Per capita incomes for top GSP beneficiary countries remain well below the statutory “high-income” threshold for automatic graduation

You can download the full report, which includes much, much more info, by clicking here.

California companies imported an estimated $2.7 billion under GSP in 2011, saving them on average 3.9%. Thailand was the most important source of GSP imports, accounting for about 37 percent of the tariff savings. Bus tires were California’s top import under GSP in 2011 and would have faced average tariffs of 4% without GSP.

Yet GSP is set to expire on July 31, 2013, and companies could face tariffs higher tariffs starting on August 1 if Congress does not pass legislation renewing GSP. When GSP expired at the end of 2010, American companies paid nearly $2 million per day, every day, until Congress finally acted 11 months later!

This graphic shows just some of the negative impacts from the last GSP expiration. It also helps explain why more than 335 companies and associations – including at least 61 in California – joined the 2011 GSP Supporter List urging renewal of the program when it last expired.

Are you a California company that would be hurt by GSP expiration? If so, please take 30 seconds to let Congress know by adding your name to our free 2013 GSP Supporter List right now.