TPP could cut $200 million in taxes on Kansas employers over five years

Posted on by Dan Anthony

According to new research on Kansas’ 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 Kansas employers dramatically. These benefits come in addition to opening new markets for exports and modernizing outdated rules.

How much could Kansas employers save? In 2015, imports into Kansas from new TPP countries faced an estimated $54.0 million in tariffs (i.e., taxes). TPP could eliminate 79 percent of these taxes by year five, saving as much as $205.8 million over that period, as shown in the graph below.

tpp_state_kansas_cuts

What types of products would be impacted? Imports into Kansas 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 Kansas whose import taxes would fall to zero upon implementation of TPP.

tpp_state_kansas_products

More information. The one-page fact sheet with the above information (and more) on potential TPP import benefits for Kansas 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.

TPP could cut $500 million in taxes on Kentucky employers over five years

Posted on by Dan Anthony

According to new research on Kentucky’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 Kentucky employers dramatically. These benefits come in addition to opening new markets for exports and modernizing outdated rules.

How much could Kentucky employers save? In 2015, imports into Kentucky from new TPP countries faced an estimated $116.8 million in tariffs (i.e., taxes). TPP could eliminate 90 percent of these taxes by year five, saving as much as $510.8 million over that period, as shown in the graph below.

tpp_state_kentucky_cuts

What types of products would be impacted? Imports into Kentucky 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 Kentucky whose import taxes would fall to zero upon implementation of TPP.

tpp_state_kentucky_products

More information. The one-page fact sheet with the above information (and more) on potential TPP import benefits for Kentucky employers is available here. while sheets with potential TPP import benefits for all states are available here.

If your company imports from TPP countries, learn how TPP could 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.

New interactive map shows potential import benefits from TPP by state

Posted on by Dan Anthony

Today we launched a new interactive map featuring first-of-its-kind research on the potential impacts of US tariff cuts under TPP for employers in all states.

The research is unique in several ways. First, it quantifies estimated tariffs paid on import from the so-called “new TPP” countries (i.e., Brunei, Japan, Malaysia, New Zealand, and Vietnam). Second, it uses the proposed US tariff reductions to show how those taxes could be reduced for employers in every state over the first five years of TPP implementation. Third, the research provides multiple examples of specific products imported into each state of products whose tariffs would be eliminated immediately upon implementation (e.g., Alabama’s imports of textile finishing dyes from Japan or Michigan’s imports of mufflers from Malaysia).

The interactive map highlights the top-line data for each state in terms of import taxes paid and potential tax cuts. For example, employers importing into Kentucky from new TPP countries paid an estimated $117 million in import taxes in 2015. If TPP were in effect, tariffs on those same products would be reduced by 90 percent by year five, potential saving Kentucky employers over $500 million along the way.tpp_state_imports_map

tpp_state_imports_kentuckyIn addition to the “fast facts,” clicking on the map also provides an option to download the corresponding one-page fact sheet for each state (pictured). The fact sheets include addition details, such as how the tariffs paid would fall over time, the list of key products eligible for duty-free treatment, and the top sources for products currently facing import taxes.

Using Kentucky again: most tariffs would be eliminated immediately and the majority of tariffs paid are on imports from Japan. Numerous raw materials and components used by American manufacturers – such as metal-working machinery from New Zealand, wiring sets (auto parts) from Vietnam, and rubber gaskets from Malaysia – are among the Kentucky imports that would go duty-free immediately.

Perhaps surprisingly to many, there is tremendous variation between the states – and those differences are not just based on import volumes. For example, while more than 95 percent of imports into Alaska and West Virginia could be duty free by year 5, just 28 percent of imports into Hawaii could be eligible. we’ll be publishing several blog posts daily for the rest of the month to highlight some of the research for each state.