The luxury sector in both the UK and the US can finally breathe a sigh of relief as a lengthy trade dispute between the two countries has reached its conclusion after 17 years. This dispute revolved around subsidies given to Boeing and Airbus, leading to both nations imposing punitive tariffs on each other’s exports. These tariffs had a detrimental effect on the luxury goods industry.
However, there is now positive news on the horizon. Earlier this year, the UK took the first step in resolving the issue by suspending retaliatory tariffs on the US. Following suit, the US agreed to a four-month tariff suspension, paving the way for negotiations on a more permanent agreement.
The resolution of this trade dispute is certainly cause for celebration within the UK luxury industry. Walpole, the industry body, has expressed its delight, hailing it as “fantastic news.” The dispute had significantly impacted the export sales of numerous luxury goods, including UK cashmere wool, tailoring, Scotch whisky, Stilton cheese, and construction vehicles. With the dispute finally settled, the luxury sector can expect a boost in exports and a return to normalcy.
Helen Brocklebank, CEO of Walpole, expressed her satisfaction with the resolution, emphasizing that luxury goods should never have been embroiled in a trade war over plane parts. This agreement allows the industry to move past a damaging issue and focus on strengthening its trading relationship with the US.
Liz Truss, the UK international trade secretary, hailed the deal as a major milestone, highlighting the positive impact it would have on job creation and economic recovery. Truss stated that “this deal will support jobs across the country and is fantastic news for major employers.” She also stressed the importance of leveraging free trade to overcome the challenges posed by the pandemic and to build a better future.
The settlement of the UK-US trade dispute signifies a turning point for the luxury sector. Not only does it provide relief from punitive tariffs, but it also sets the stage for renewed emphasis on growing and expanding international trade. With the dispute now in the rearview mirror, businesses in the luxury sector can look ahead to a brighter future of collaboration and prosperity.
Useful Links:
1. Walpole British Luxury
2. U.S. Department of Commerce – International Trade Administration
