As tensions rise between the US and the EU due to trade disputes, UK luxury brands are taking proactive measures to protect their trade relationships, particularly in anticipation of the uncertainties surrounding Brexit. In response to the recent imposition of tariffs on key British luxury exports by the US, a crucial four-day trade mission to the US has been organized by luxury trade body Walpole, featuring prominent names like Harrods, Molton Brown, and renowned Savile Row tailor Kathryn Sargent.
The timing of this trade mission is critical, given the impact of tariffs on British luxury goods and the looming Brexit scenario. These tariffs were imposed by the US in retaliation for EU subsidies to Airbus, a move that is likely to complicate post-Brexit trade dynamics for the UK even further.
As the US stands as the UK’s second-largest export destination, maintaining robust trade ties with this market is imperative. Michael Ward, managing director of Harrods and chairman of Walpole, is spearheading the mission to strengthen connections and identify new opportunities for British luxury brands in the US.
During the trade mission, participants are engaging in high-level meetings with business leaders and officials in key cities like Chicago, New York, and Washington D.C. Besides showcasing their products, they are also shining a spotlight on Britain as a prime tourist destination for American travelers. This is particularly significant for the UK’s retail sector, as US tourists contribute substantially to the revenue of luxury brands and retailers in major cities across the UK.
Various events have been planned as part of the mission to highlight the excellence of British luxury. For instance, in New York City, discussions on ‘The Art of British Luxury Hospitality’ and an afternoon tea session with esteemed figures like Dame Glenda Bailey from Harper’s Bazaar are scheduled. These events aim to not only bolster trade ties but also to strengthen the cultural bonds between the UK and the US.
The impact of the newly imposed tariffs on British luxury goods is starting to manifest, with concerns raised about potential price hikes for products like two-piece suits in the US market. This poses a challenge for UK luxury brands as they navigate the intricate web of global trade relations amidst Brexit turmoil and ongoing trade tensions. It is evident that safeguarding their position in the fiercely competitive US market remains a top priority.
For more information on the UK luxury industry and trade missions, you can visit the official Walpole website here. Additionally, for updates on Brexit and its implications on UK trade, you can refer to the official UK government website here.
