Based on data released today by the U.S. government, GSP expiration cost U.S. importers $56.5 million in September – about $20,000 more than it cost in August. In those first two months, that works out to about $1.85 million for each day that GSP was expired. Today is the 110th day since GSP expired, so the new taxes paid by American companies is probably closer to $200 million.
These new taxes are beginning to take a toll on importers. MG Golf in Irving, Texas is a small business that imports golf gloves from Indonesia. MG Golf has paid more than $40,000 in higher taxes since GSP expired and was forced to lay off one of its warehouse employees. If GSP is not renewed in the near future, the company expects additional cost-cutting efforts will be necessary.
Higher taxes are the only problem for importers: for a small jewelry fabricator in California, many regular customers have refused to place orders no one can be certain that tariffs will be refunded. In addition to the $160,000 in new import taxes, the company has lost an additional $500,000 in sales.
And each day these problems get worse. That’s one reason that 10 new companies have joined the GSP supporter list in the last week alone. If you’re being hurt GSP expiration, make sure to add your organization (it’s free) here and take our latest expiration survey.