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.”

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.

In the first six months of expiration, American companies paid at least $480 million in extra taxes as a result of GSP expiration. Companies in 34 states (plus Puerto Rico) paid at least $1 million in tariffs from January-June 2021 due to GSP expiration. The map below shows estimated tariffs for products claiming GSP paid by state in that period.

June was the most expensive month of GSP expiration yet for 12 states: Alabama, Colorado, Delaware, Iowa, Maine, Maryland, Minnesota, New Hampshire, Ohio, Oklahoma, Rhode Island, and South Carolina. For Alabama, Colorado, and Delaware, each new month has been the most expensive one yet (e.g., June was more than May, which was more than April, which was more than March…).

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. 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. Companies that want to help the Coalition for GSP educate policymakers on the importance of GSP should also join the Coalition for GSP and/or add their name to the free GSP supporter list.

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, and June.

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

Overall, the value of GSP imports and tariff savings both increased by more than 10 percent compared to May 2015. Some states, such as Arkansas and Rhode Island, saw very large increases in GSP imports and savings compared to May 2015, as shown in the graphic below.

In Arkansas, GSP imports and savings both increased by 37 percent compared to one year earlier. Vanadium oxides and hydroxides from South Africa, firearms from Turkey, and transmission parts from Thailand contributed most to Arkansas’ GSP increases.

In Rhode Island, GSP imports increased by 79 percent and savings from GSP by 145 percent compared to one year earlier. Costume jewelry from Thailand, glass fibers from Sri Lanka, and metal picture frames from Turkey contributed most to Rhode Island’s GSP increases.

Imports from Cambodia jumped by 121 percent, led by increased imports of window blinds by companies in California. GSP eliminated about $109,000 in import taxes on buses in May and has waived more than $400,000 on imports of buses in the first five months of 2016.

Instead of having that money on hand to pay employees, purchase new materials, and otherwise invest in their business, American companies are forced to pay this money to Customs at the border. Companies like Vortex Optics in Wisconsin, Touchstone Crystal in Rhode Island, and many, many others.

For those who value precision, the estimated taxes on (previously) GSP-eligible imports in August was:
Importers of select products were particularly hard hit. Telescopic sights from the Philippines, building stone from Brazil, pesticides and PET resins from India, prepared foods from Thailand, and plywood from Indonesia each faced between $500,000 and $1.2 million in new taxes in August because of GSP expiration. Many other products faced more than $100,000 in new taxes in the first month without GSP.

If your company is one of those being harmed by expiration, be sure to join the 360+ companies and associations on the GSP Supporter List by adding your name here. You can also contact us directly by emailing Dan Anthony.

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.

Which states benefit from duty-free imports under GSP?  According to our latest research, all of them!

It’s no surprise that big states like California and Texas saved tens of millions of dollars annually because of GSP, but it’s important for companies in little smaller states too.  Companies in Rhode Island – the great state where this writer was born and raised – saved an estimated $3.4 million in 2012 because of GSP!

The graphic above shows estimated GSP imports (black) and savings (red) for all 50 states and Puerto Rico in 2012.  Having the data is only half the battle, though, so if you’re in those states and benefit from GSP, make sure to join our free Supporter List!

• 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.

Rhode Island companies imported an estimated $59.8 million under GSP in 2011, saving them on average 6.8%. Thailand was the most important source of GSP imports, accounting for about 76 percent of the tariff savings. Silver jewelry was Rhode Island’s top import under GSP in 2011 and would have faced average tariffs of 5.2% 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 Rhode Island 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.