Trump Announces Withdrawal of GSP Travel Goods Benefits for India and Turkey
This week, President Trump announced the withdrawal of benefits for India and Turkey under the Generalized System of Preferences (GSP) program. GSP allows U.S. imports of travel goods from most developing countries to enter the U.S. duty-free. The March 4 announcement starts a 60-day clock, which means benefits cannot be removed earlier than May 3, 2019. GSP withdrawal affects about $300 million worth of U.S. travel goods imports from the two countries, $287 million of which is India. President Trump chose to remove India’s GSP benefits because, “India has not assured the United States that it will provide equitable and reasonable access to the markets of India.” Click the following hyperlinks for the latest U.S. travel goods import data, including volume and value of U.S. imports from GSP countries, broken down by category: luggage, brief/computer cases, handbags, backpacks, travel/sports bags, and flatgoods.
During the 60-day period, TGA will urge the Trump administration to reverse its decision on India. No information is available yet on President Trump’s pending GSP reviews for other countries – namely Indonesia and Thailand – which are also key sources of travel goods. TGA will provide more information as it becomes available.
Trump Keeps Punitive Tariffs on U.S. Travel Goods from China at 10% “Until Further Notice”
Earlier this week, the Trump administration finally issued the official notice that punitive tariffs on U.S. travel goods imports from China will remain at 10% “until further notice.” Trump had previously announced that punitive tariffs would increase to 25% on March 2. Even though the official notice wasn’t published until March 5, U.S. Customs and Border Protection (CBP) thankfully issued a February 28 CSMS message announcing it had already reprogrammed their systems to keep the punitive tariff at 10%. President Trump announced the delay in the increase as negotiations continue between the U.S. and China on a deal to end the China trade war. President Trump and Chinese President Xi have tentatively scheduled a March 27 meeting at Mar-a-Lago to finalize a deal. TGA, as part of Americans for Free Trade (@TariffsHurt), continues to fight the tariffs.