Importers Ask for Delay in GSP Reductions for Thailand
Trade groups that represent importers are asking that restrictions to the products eligible for the Generalized System of Preferences benefits program from Thailand be delayed. The groups said in a letter to President Donald Trump that the changes, scheduled for April 25, “would increase costs for American employers [that] already are struggling to maintain employment levels in response to shutdowns and falling demand around the world” brought on by COVID-19 pandemic response measures. They asked for at least a six-month delay.
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“Most GSP users are small businesses, and many are seeking new [Paycheck Protection Program (PPP)] loans to help cover expenses over the ... [next] few months. Yet PPP recipients may be forced to divert funding from workers to tariff costs if the suspension takes effect. In effect, the federal government could end up paying the newly imposed tariffs itself through the PPP,” the letter says. “The Thailand suspension could undermine COVID-19 response directly. Products that would face higher tariffs include parts for hospital laundry equipment, single-use footwear covers, pumps, compression materials, and plastic resins and other components used to make medical equipment.”
In a press release announcing the letter, Bengt Bruce said that his company in Florida that designs and sells industrial washers and the parts for them, relies on washers, dryers and parts from Thailand. “Hospitals use our specialty laundry equipment, such as barrier models that isolate clean and dirty sides to prevent the spread of diseases like [COVID-19], while other machines are used to reduce cancer risks from firefighters gear,” Bruce said.
The letter was signed by the American Apparel and Footwear Association, the Association of Food Importers, the Coalition for GSP, the Consumer Technology Association, the Fashion Jewelry & Accessories Trade Association, the International Wood Products Association, the National Association of Chemical Distributors, the National Confectioners Association, the National Fisheries Institute, the National Foreign Trade Council, the National Retail Federation, the National Taxpayers Union, the Outdoor Industry Association, the R Street Institute, the Retail Industry Leaders Association, the US-ASEAN Business Council, Inc., and the U.S. Fashion Industry Association.