Based on new August trade data released by the US government, we can finally see the cost of Congress’ inability to renew GSP before July 31…and it’s not pretty. GSP should have eliminated about $56.5 million in taxes on about $1.6 billion in imports in August alone.
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.