March was the most expensive month yet of GSP expiration: the $88 million in extra tariffs paid far exceeded the $65-$70 million paid in January and February. In the first three months of expiration, American companies paid at least $225 million in extra taxes as a result of GSP expiration.

Companies in 28 states paid at least $1 million in tariffs in the first quarter of 2021 due to GSP expiration. The map below shows estimated tariffs for products claiming GSP paid by state.

In Oregon, the March tariff costs exceeded January and February combined. It wasn’t just one product. March was the most expensive month yet for Oregon GSP importers of optical equipment and coconut flour from the Philippines, sweeteners and plywood from Indonesia, rubber gloves from Thailand, and wooden doors from Brazil. And it wasn’t just Oregon: companies in Delaware, South Dakota, Vermont, and Wyoming all paid more in March than in January and February combined.

As is so often the case, GSP expiration contributes to larger national issues such as surging lumber costs (WSJ: Lumber Prices Break New Records, Adding Heat to Home Prices, CNN: New homes cost $36,000 more because of an epic shortage of lumber). In the first quarter, the GSP tariff impact on plywood and veneers grew 118% from $4.8 million in 2020 to $10.5 million in 2021. (In 2020, these were savings, but in 2021 they must be paid due to expiration.) The tariff impact nearly tripled compared to 2019. Plywood and veneers ranked 6th in terms of GSP tariff impacts so far in 2021, up from 25th in 2019. It’s not just plywood and flooring-related products: GSP imports of wooden doors are up 40% in 2021 and builders joinery are up 96%.

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.

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

Those dollars and cents impact peoples lives and livelihoods: Sugarpod laid off a staff member and cut worker benefits due to higher costs. It scaled back other investments as well, including canceling plans to expand its product lines.

In addition to the $30,172.01 that is unavailable to Inplac for investing in operations, the company also lost sales due to GSP expiration. Factoring in 4.2% import taxes make it difficult to compete in the low-margin market for plastic bags.

As noted previously, there are no refunds for sales not made, meaning companies can never truly “recoup” all the losses from GSP expiration. The longer Congress allows GSP to remain expired, the greater the potential damage for companies and workers alike.

Both Sugarpod and Inplac provided this info by answering our GSP expiration survey, which you can complete here. As always, no company-specific information will be published without explicit permission.

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.

*** Tariffs on GSP imports are scheduled to go up on January 1. By the time that feels “close,” it may be too late to make a difference in Congress. So if you import under GSP and don’t see your organization here, please add it here today. ***

The companies are based in 11 different states and most are small businesses (Panasonic North America certainly is not). Their imports are as varied as their locations: Engineered Components Company imports cap screws from Thailand; Galaxy Sports imports gloves from Indonesia; Global Chemcorp imports pigments and dyes from India, and Sugarpod Naturals imports dietary supplements from the Philippines.

Two companies – B&C Technologies and Fab-Line Machinery – are among those featured on our Company Profiles page.

The next potential GSP expiration is less than 9 months away. If you import under GSP, be sure to join our free GSP Supporter List so we can continue making the case for GSP renewal well in advance of the pending expiration date.

GSP Supporter List companies added the week of April 10, 2017:

• Andre Prost, Inc. in Old Saybrook, Connecticut
• B&C Technologies LLC in Panama City Beach, Florida
• Bolcof Port Polyers / Calsak Plastics in Azusa, California
• Engineered Components Company in Elgin, Illinois
• Fab-Line Machinery, LLC in Nashville, Tennessee
• Galaxy SPorts, Inc. in South Bend, Indiana
• Global Chemcorp, LLC in Charlotte, North Carolina
• Karran in Vincennes, Indiana
• Organik Kimya US, Inc. in Burlington, Massachusetts
• Panasonic Corporation of North American in Newark, New Jersey
• Sugarpod Naturals in Hillsboro, Oregon
• TRI-K Industries Inc. in Denville, New Jersey
• YGI Group in New York, New York
• Zhong Ya Chemical (USA) Ltd. in Edison, New Jersey

In the clip below, Senator Wyden discusses how GSP is an “economic win-win” for developing countries and U.S. manufacturers, including GSP Supporter List company Stackhouse Athletic in Salem, Oregon.

[youtube https://www.youtube.com/watch?v=9xfXQVAIjBQ]

For more recent info, below is our just-released 2015 GSP savings graphic for Oregon (all other state graphics here) and you can download our new 2015 Oregon state GSP report (all other state reports here).

Providing specific examples of constituents benefiting from GSP is one of the best ways to educate Members of Congress about the importance of the GSP program. This is particularly true with GSP’s current authorization set to expire at the end of 2017. If you are a GSP importer – in Oregon or anywhere else – please add your name to our free GSP supporter list so we can build support for uninterrupted GSP renewal early next year.

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.

Oregon companies imported an estimated $113 million under GSP in 2011, saving them on average 4.2%. Indonesia was the most important source of GSP imports, accounting for about 25 percent of the tariff savings. Tires were Oregon’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 12 in Oregon – joined the 2011 GSP Supporter List urging renewal of the program when it last expired.

Are you an Oregon 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.