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:

• join the Coalition for GSP
• add their name to the free GSP supporter list
• answer our very short survey on GSP expiration impacts to date

The products facing the most new tariffs vary greatly by state:

• In Florida, roses faced more than $1.8 million in new tariffs due to GSP expiration in the run-up to Valentine’s Day.
• In New York, gold jewelry faced more than $1 million in new tariffs.
• In Louisiana, over $600,000 in tariffs were paid on steel-making materials (likely by a company around the Port of New Orleans for distribution throughout the country).
• In Massachusetts, over $200,000 in tariffs were paid on leather sports gloves.
• In Pennsylvania over $160,000 were paid for rubber gloves. They were also the top products for tariffs faced in Connecticut, Mississippi, and Minnesota. Notably, while GSP countries face new tariffs, identical products from China continue to receive a Section 301 tariff waiver for public health reasons.

The $70 million in tariffs paid is a conservative estimate, and the real figure likely is millions of dollars more. Why? Estimates only capture products that continued to claim GSP despite expiration. Yet for numerous products GSP claims fell dramatically while imports continued or even grew. For example, more than $11 million of road wheels from Thailand (88%) were imported in January that didn’t claim GSP. Just 0.4% of those same imports didn’t claim GSP in January 2020. Camshafts and gelatin from Brazil, guitars from Indonesia, and bicycles from Cambodia similarly saw large values of unclaimed GSP imports in January 2021 when nearly all such imports claimed GSP in January 2020.

GSP expiration is already costing American jobs and raising prices for American companies that need inputs and consumers that purchase finished goods. It is critical that Congress renew GSP – with refunds for tariffs paid – as soon as possible. To help the Coalition for GSP educate policymakers on who is hurt by expiration (and how), companies are strongly encouraged to:

• write their lawmakers about GSP renewal with our Contact Congress tool
• join the Coalition for GSP
• add their name to the free GSP supporter list
• answer our very short survey on GSP expiration impacts to date

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, and March.

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

Overall, GSP tariff savings increased increased by 1.6 percent compared to January 2015. The value of imports under GSP fell slightly (-1.8 percent), but not nearly as much as overall U.S. imports from the world (-6.1 percent). Some states, including Mississippi and Nevada, saw big increases in GSP imports and savings compared to January 2015, as shown in the graphic below.

In Mississippi, GSP imports increased by 66 percent and savings from GSP by 68 percent compared to one year earlier. Chemicals from India, electrical equipment from the Philippines, and PVC sheets and plates from Thailand contributed most to Mississippi’s GSP increases.

In Nevada, GSP imports increased by 52 percent and savings from GSP by 73 percent compared to one year earlier. Metal grinding balls from India, tungsten from Bolivia, and ceramic housewares from Thailand contributed most to Nevada’s GSP increases.

Imports from Ghana jumped by 380 percent, led by increased imports of cocoa powder by companies in Illinois. GSP eliminated more than $300,000 in import taxes on pencils and crayons. About two-thirds of those imports went to Pennsylvania.

GSP renewal appears to be having a very positive impact on American companies – and their sourcing from GSP countries.

Based on data released last week, American importers saved $57 million in November 2015 as a result of the program’s reinstatement in late July 2015. In total, GSP saved American companies $230 million between August and November 2015.

With the program back in place, GSP usage appears to be climbing. GSP savings in each of the last 4 months exceeded the average monthly tariffs paid during the 2-year expiration. That is true despite the fact that several major GSP imports (e.g., plywood from Indonesia) have lost GSP benefits since the program was reinstated.

Increased GSP usage plays out at the state level as well:

• GSP savings in November 2015 exceeded the tariffs paid during any of the 24 months of GSP expiration for 7 states: Colorado, Kansas, Michigan, Mississippi, South Carolina, Wisconsin, and Wyoming
• GSP savings in August, September, or October exceeded tariffs paid during any expiration month for 8 others states: Alabama, Arkansas, Missouri, New Hampshire, New York, Ohio, Utah, and Washington
• In Mississippi, GSP savings in 3 of the 4 months since reinstatement exceeded the tariffs paid during any expiration month: August, October, November
• GSP savings in two different months since reinstatement exceeded the tariffs paid during any expiration month for 7 other states: Michigan, New Hampshire, Ohio, South Carolina, Wisconsin, Wyoming

Of course, those savings are on top of the $1.3+ billion in refunds due to companies for tariffs paid during expiration. Customs announced that 98 percent of the automatic refunds had been processed by late September. The total refund value will grow as companies had until December 28 to request refunds for products that did not claim GSP during the expiration.

All of which has had a positive impact on companies, as detailed here, here, here, here, or here. If you have a good story about how GSP renewal is benefiting your business, we want to hear it. You can either email directly so or answer the questions here.

Mississippi companies imported an estimated $41.2 million under GSP in 2011, saving them on average 3.4%. India was the most important source of GSP imports, accounting for about 43 percent of the tariff savings. Leather hides were Mississippi’s top import under GSP in 2011 and would have faced average tariffs of 2.8% 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 joined the 2011 GSP Supporter List urging renewal of the program when it last expired.

Are you a Mississippi 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.