According to new research on Michigan’s imports from the so-called “new TPP” countries not covered by existing free trade agreements (i.e., Brunei, Japan, Malaysia, New Zealand, and Vietnam), the TPP would cut import taxes paid by Michigan employers dramatically. These benefits come in addition to opening new markets for exports and modernizing outdated rules.
How much could Michigan employers save? In 2015, imports into Michigan from new TPP countries faced an estimated $79.5 million in tariffs (i.e., taxes). TPP could eliminate 81 percent of these taxes by year five, saving as much as $310.3 million over that period, as shown in the graph below.
What types of products would be impacted? Imports into Michigan are a mix of raw materials and components used by American manufacturers and finished goods sold directly to American families. Clearly, not all the tariffs go away: many imports are subject to phase-outs and tariffs would remain in place for up to 30 years on certain sensitive items. The box below highlights select imports into Michigan whose import taxes would fall to zero upon implementation of TPP.
More information. The one-page fact sheet with the above information (and more) on potential TPP import benefits for Michigan employers is available here, while sheets with potential TPP import benefits for all states are available here.
If your company imports from TPP countries, you can learn how TPP would impact your products here.
For more general info on trade and investment between specific states and TPP countries, you can visit the Trade Benefits America state resources page.