Will the new US tariffs affect you?
As the proposed US tariffs were announced last week, it is evident that the UK will not be immune with a proposed 10% tariff on goods exported to the US.
According to data released last week by the Business of Fashion, the new tariffs are set to affect many sourcing regions with Cambodia and Vietnam to receive a near 50% tariff and the EU a 20% tariff on goods exported to the US. Data suggests that luxury brands will face a hit to their net income if the 20% tariff goes ahead without any mitigating action, meaning that Burberry, Kering and LVMH would be affected.
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Will the tariffs on luxury goods force us to look at 'Made in Britain' initiatives?
US duty customs are set to impact luxury goods. Tariffs from the US have come for the UK and many large brands are speculating how the Government and consumers will react.
Last month, I was interviewed for Euronews on how Trump’s levies would impact fast-fashion brands which are made in China and sold to the US. Fast-fashion brands were taking advantage of a loophole called ‘de minimis’ which allowed for packages under $800 to enter the US without duty. While Trump’s 10% levy on goods made in China and sold to the US closed that loophole, it was noted that fast-fashion brands were easily able to absorb these costs. Smaller brands would in fact be hit harder, and may have to change a product’s structure and production process, by getting different components from different countries before assembling for example.
A month later and the headlines from Trump’s administration are threatening how the US tariffs will impact luxury goods closer to home, both in the UK and Europe.
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