The fashion industry in the UK is currently facing a daunting obstacle as an additional 25 per cent tariff is imposed on seventeen different product lines when exported to the US. This tariff was initially put into effect in October 2019 due to a disagreement between the US and the EU regarding subsidies in the aircraft industry. Unfortunately, this has caused significant financial strain on UK manufacturers selling their products across the Atlantic, with items such as sweaters, apparel, blankets, and bed linen being directly affected.
Adam Mansell, the CEO of the UK Fashion & Textile Association (UKFT), expressed his disappointment with the situation, highlighting the detrimental impact on UK companies already struggling due to the effects of Covid-19 and the uncertainties surrounding trade agreements with the EU. Similarly, Simon Cotton, the CEO of Johnstons of Elgin, voiced his concerns about the unjust punishment the industry is facing for a dispute unrelated to their operations.
One of the brands hit hardest by these additional tariffs is John Smedley, a prominent knitwear brand and manufacturer. Bill Leach, the global sales director, emphasized the significant investments made in the US market and the challenges faced due to the higher costs incurred as a result of these tariffs. With the situation continuing to unfold, tough decisions may need to be made regarding the business strategies of UK manufacturers in the US market.
The exclusive impact of these tariffs on UK-manufactured products under specific HTS Codes has prompted UKFT to reach out to Liz Truss, the secretary of state for International Trade, to seek a prompt resolution to the issue. It is crucial to underscore that the UK fashion and textile industry should not bear the brunt of a dispute that is not within their realm of influence.
Given the ongoing challenges faced by the UK fashion industry in the US market, urgent action is necessary to support manufacturers and ensure sustainable growth amidst these unpredictable times. This trade dispute serves as a stark reminder of the intricate and interconnected nature of global trade dynamics, highlighting how conflicts in one sector can have far-reaching repercussions on industries across borders.
To learn more about the impact of tariffs on the fashion industry, you can visit BBC News. For updates on trade agreements and industry developments, check out the latest articles on Financial Times.
