Washington, D.C. (December 2, 2024): As we enter the final days of this Congress, SFIA has pushed for the re-authorization of the popular Generalized System of Preferences (GSP) tariff relief program during the upcoming lame duck session. GSP offers duty-free entry of products made in nearly 120 countries with developing economies. U.S. companies have paid an estimated $4 billion in tariffs since GSP lapsed on January 1, 2021, and SFIA is committed to seeking tariff relief to keep costs down. Despite broad bi-partisan support in Congress, the GSP has still not been renewed.
The cost increase is not limited to imports of consumer goods, as many domestic manufacturers rely on inputs from China to make products. The increased cost of inputs adversely impacts domestic manufacturers’ competitiveness on the global stage and harms job creation in the U.S. manufacturing industry.
Prior to GSP lapsing, companies were moving sourcing away from China to GSP-eligible countries to diversify supply chains and reduce tariff exposure. When GSP lapsed, U.S. investments in developing countries waned and China stepped in, investing in new ports and other infrastructure, threatening U.S. leadership on trade and overseas development.
With the new Administration and Congress starting January 2025, the letter stresses the urgency of acting now on GSP tariff relief.
For more information on GSP, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].