The US to hit European fashion brands with new tariff

America and Europe Trade War 2020

The US to hit European fashion brands with new tariff

The US to hit European fashion brands with new tariff

In Irish fashion news, America is to hit Irish and European fashion brands with a new trade tariff. New measures drawn up by the US government will see all fashion goods exported to America hit with a 25% tariff.

Come 1st September 2020, America will slap this heavy tariff of 25% on all fashion goods containing , wool, cashmere and linen homeware.

This is seen as a retaliatory measure by the US in the on-going row between themselves and Europe over the Airbus-Boeing dispute.
Back in October of last year, the World Trade Organisation sanctioned the US to take $7.5 billion dollars in counter-measures following a WTO victory in the long-running dispute against the EU, France, Germany, Spain, and the United Kingdom regarding their subsidies for the Airbus consortium.

The US had heighten import tariffs on selected high-end goods from Europe to 25%. This has impacted hard on European luxury companies exporting goods to the US market.

With fashion brands and labels having to cope with the uncertainty of the effects that Brexit will have on exports, they also have to deal with the nightmare scenario that COVID-19 is having on the industry.

Many experts in both the US and Europe believe that the retaliatory measures taken by the US government will cost jobs across the sector both in America and Europe.

They also believe it will cause fashion companies on both continents to cut back on production of items that will see a 25% tax applied for their goods that enter the United States.

According to one fashion expert, officials in America are playing a cat and mouse game with the EU commission which will see American consumers having to pay extra for luxury goods imported into America from Europe.

With the new tax set to kick in at the end of August, many in the fashion industry are holding their breath to see the next measures that the EU will impose on American goods coming the other way.

The US to hit European fashion brands with new tariff

 

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