That question was asked by a respondent to our GSP Expiration Poll.* Unfortunately, the question is not simply rhetorical. The Connecticut-based company has less than 25 employees, but its tariff payments have increased by $45,000 to $70,000 per month since GSP expired. According to the company: “We have had to slash our budget and remove potential openings for new positions to try and manage this blow dealt by the non renewal of GSP.”
And they are not alone. A company in New Jersey says: “We need GSP renewal. We are losing sales as our products are too expensive & we will have to cut jobs in our office.”
Another company in Arkansas calls GSP expiration “one of the most frustrating things I’ve had to deal with.” The respondent goes on to say that: “I was set to hire at least one employee and possibly two at the beginning of the year which I scrapped after paying about $12,000 in customs that used to be covered under GSP eligibility.”
Other responses are more blunt, like this one from a company in Michigan: “Stop wasting time, money and resources and renew the GSP.”
All of the above statements are from small businesses, which are expected to drive the economic recovery. However, as we highlighted Friday, these companies are instead laying off workers because of cash-flow problems. Until Congress acts to renew GSP, the tariff burden on small businesses will remain unnecessarily high.
We’ve received 65 responses to the GSP Expiration Poll to date, but are always looking for more. If you’re a GSP importer that hasn’t completed the poll, could you take 30 seconds to tell us your story? Thanks in advance!