“Many small U.S. businesses, including ACD members, rely on the lower duty costs afforded by the GSP Program to remain competitive in the marketplace and reduce their reliance on China. More importantly, the GSP Program creates U.S. jobs.”

Byer continued, “Unfortunately, Congress has failed to reauthorize GSP, which expired on December 31, 2020. Since its lapse, small businesses to Fortune 500 corporations have absorbed the costs of duties. This has prevented them from investing in research and development, expanding their workforces, and opening new facilities. The lack of investment in this critical trade program has stunted the growth potential of American businesses and handicapped the economy. Moreover, the price has reached consumers, who are grappling with record-high inflation leftover from the Biden Administration.”

Byer also highlighted the additional costs placed on the industry.  

“Between January 2021 and December 2023, U.S. companies have paid at least $3.36 billion in new tariffs. The annual duties paid by the chemical distribution industry alone average $242.3 million. Chemicals serve as the building blocks of every sector, and price increases at the beginning of the supply chain reverberate throughout the economy. The annual cost to the American economy through this impact on the chemical distribution industry is estimated to be $317.4 million.”

Byer concluded, “This historically bipartisan program has languished for too long. It is time for American businesses to receive relief and prosper. ACD looks forward to working with your Administration, Congress, and other stakeholders to reinstitute this essential trade program.”

To read the full letter, click here.