Hawaii – Renew GSP Today

October 2021 would’ve been the highest month ever for GSP savings – if GSP wasn’t expired

Dan Anthony — Wed, 08 Dec 2021 15:00:57 +0000

Based on an analysis of new U.S. Census Bureau data released yesterday, expiration of the Generalized System of Preferences (GSP) program cost American companies at least $110 million in October 2021. Had congressional authorization for GSP not expired on December 31, 2020, it would’ve been the highest month of tariffs eliminated in the history of the GSP program. From January-October 2021, American companies paid at least $873 million in extra taxes due to GSP expiration.

The China/Section 301 diversion is real. So far in 2021, GSP imports are up 12% for products where Chinese imports face Section 301 tariffs but down 7% for products where Chinese imports don’t face any new Section 301 tariffs. It is impossible to know how much more GSP imports might be up (or Chinese imports down) if GSP expiration hadn’t forced American companies to pay tariffs for those products too. We wrote about how GSP renewal must be a part of any “China trade” conversation here.

Imports into 38 states (plus Puerto Rico) paid at least $1 million in tariffs due to GSP expiration. The map below shows estimated tariffs paid for products claiming GSP by state.

October was the most expensive month of GSP expiration yet for 14 states: Alabama, California, Connecticut, Delaware, Hawaii, Illinois, Louisiana, Minnesota, New Jersey, South Carolina, Tennessee, Texas, Virginia, and Washington (plus DC and Puerto Rico). GSP expiration costs have a direct, negative impact on American companies ability to remain competitive, particularly small businesses.

Surprisingly, expiration costs account for less than half of costs related to *all* GSP policy decisions. In the first 10 months of 2021, companies paid up to $560 million in extra tariffs due to product-specific exclusions and up to $550 million due to suspensions following country practice reviews for India, Thailand, and Turkey. Without such decisions, GSP could eliminate approximately $200 million in tariffs on $4 billion in trade per month.

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.

GSP expiration cost American companies over $100 million in August 2021

Dan Anthony — Tue, 05 Oct 2021 20:00:43 +0000

Based on an analysis of new U.S. Census Bureau data released today, expiration of the Generalized System of Preferences (GSP) program cost American companies $100+ million in August 2021. Congressional authorization for GSP expired on December 31, 2020. Citing these growing costs along side Covid-related and supply chain challenges, over 300 U.S. companies and associations sent a letter to Congressional trade leaders urging GSP retroactive renewal in late September.

From January-August 2021, American companies paid at least $666 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.

August was the most expensive month of GSP expiration yet both nationally and for 15 states: Alabama, Delaware, Georgia, Hawaii, Idaho, Maryland, Minnesota, Montana, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Texas, and Washington. Tariffs paid on imports into Minnesota were 84% higher than any previous month. For Pennsylvania and Georgia, tariffs paid were 53% and 27% higher than any previous month, respectively.

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.”

GSP expiration cost American companies another $85 million in July 2021

Dan Anthony — Tue, 07 Sep 2021 15:41:34 +0000

According to new research from the Coalition for GSP, expiration of the Generalized System of Preferences (GSP) program cost American companies at least $85 million in July 2021. Congressional authorization for GSP expired on December 31, 2020.

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.”

GSP expiration cost American companies at least $397 million from January-May 2021

Dan Anthony — Tue, 20 Jul 2021 14:19:29 +0000

According to new research from the Coalition for GSP, expiration of the Generalized System of Preferences (GSP) program cost American companies at least $89 million in May 2021. Congressional authorization for GSP expired on December 31, 2020.

In the first five months of expiration, American companies paid at least $397 million in extra taxes as a result of GSP expiration. Companies in 32 states paid at least $1 million in tariffs from January-May 2021 due to GSP expiration. The map below shows estimated tariffs for products claiming GSP paid by state in that period.

May was the most expensive month of GSP expiration yet both nationally and for 19 states: Alabama, Colorado, Delaware, Georgia, Hawaii, Illinois, Kansas, Massachusetts, Minnesota, Mississippi, Missouri, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Pennsylvania, South Carolina, and Virginia. In three states – Colorado, Kansas, and New Mexico – tariffs paid in May were at least double any of the previous four months.

While many believe the United States has low tariffs, Colorado companies have paid extra tariffs averaging 11.7% due to GSP expiration. Companies in Maine, Montana, New Hampshire, Utah, and Wisconsin have all paid extra tariffs average 7-10%.

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. Companies that want to help the Coalition for GSP educate policymakers on who is hurt by expiration (and how) should:

State-by-State Breakdown of $472 Million in GSP Savings Through July 2017

Dan Anthony — Wed, 20 Sep 2017 19:53:38 +0000

In the first seven months of 2017, GSP saved American companies $472 million in eliminated tariffs. With the addition of Delaware and Hawaii, year-to-date GSP savings through July exceeded $1 million for 39 states plus Puerto Rico.

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, June, and July.

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

A State-By-State Breakdown of the $472 Million in GSP Tariffs Savings Through August 2016

Renew GSP Today — Tue, 25 Oct 2016 18:31:02 +0000

In the first eight months of 2016, GSP saved American companies about $472 million in eliminated tariffs. Hawaii joined the list of states for which GSP eliminated at least $1 million in tariffs on imports, bringing the total to 38 states (plus Puerto Rico).

The map below shows the overall GSP imports and savings by state from January to August.

Companies in California continued to lead the way with $76 million in tax savings. Imports into New Jersey, Texas, and New York all faced $35-$40 million less in taxes because of GSP, while imports into Florida, Illinois, and Georgia all faced $25-$30 million less in taxes because of GSP. 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 some of the individual states, products, and countries with the biggest increases in January, February, March, April, May, June, July, and August.

And if you’re one of the companies benefiting from GSP renewal, be sure to answer our renewal impact survey here. You can see examples from companies that already answered the survey here, here, here, and here.

Year-to-Date GSP Savings By State through July 2016

Renew GSP Today — Wed, 28 Sep 2016 19:34:35 +0000

In the first seven months of 2016, GSP saved American companies about $410 million in eliminated tariffs. New Hampshire joined the list of states for which GSP eliminated at least $1 million in tariffs on imports, bringing the total to 37 states (plus Puerto Rico), and Hawaii is knocking on the door with an estimated $996,000 in waived tariffs.

The map below shows the overall GSP imports and savings by state from January to July.

Companies in California continued to lead the way with $65 million in tax savings. Imports into New Jersey, Texas, and New York all faced $30-$35 million less in taxes because of GSP, while imports into Florida, Illinois, and Georgia all faced $20-$25 million less in taxes because of GSP. 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 some of the individual states, products, and countries with the biggest increases in January, February, March, April, May, June, and July.

GSP Expiration Cost Importers Another $41 Million in February 2015

Renew GSP Today — Mon, 13 Apr 2015 19:24:53 +0000

Based on data released last week, continued GSP expiration cost American importers another $41 million in February 2015. Despite a significant drop from typical monthly levels (likely on account of the West Coast Port slowdown), it was the most expensive month yet for companies in Iowa in terms of tariffs paid because of GSP expiration. At nearly $2 million a day in higher taxes, GSP expiration’s estimated cost through April 13, 2015 is $1,129,643,681. The map below shows the breakdown of imports and tariffs paid by state because of GSP expiration. Companies in California, New Jersey, and Texas have paid the most because of GSP expiration, yet even importers in small states like Hawaii and Rhode Island have paid millions of dollars to date. A retroactive GSP renewal would refund taxes paid to companies in every state. Many of the companies that would benefit are among the nearly 700 companies and associations urging Congress to renew GSP. If you’re not already on the list, please take a moment to add your name here.

GSP and Hawaii: Fast Facts

Dan Anthony — Mon, 07 Jan 2013 17:31:00 +0000

The Generalized System of Preferences (GSP) program eliminates U.S. tariffs (i.e., taxes) on certain imports from developing countries. GSP imports in 2011 totaled $18.5 billion and the program saved American companies more than $700 million. GSP saved Hawaii companies an estimated $1.3 million in 2011.

Hawaii companies imported an estimated $85.5 million under GSP in 2011, saving them on average 1.6%. Thailand was the most important source of GSP imports, accounting for about 37 percent of the tariff savings. Crude oil was Hawaii’s top import under GSP in 2011.

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 joined the 2011 GSP Supporter List urging renewal of the program when it last expired.

Are you a Hawaii 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.