After months of tension and threats of new tariffs, the European Union and the United States have reached an agreement that averts a new trade escalation. The agreement, reached in Turnberry between European Commission President Ursula von der Leyen and US President Donald Trump, provides for a unified customs tariff of 15%. This is a high threshold, but far from the punitive peaks previously announced by Trump himself. Among the most affected sectors, undoubtedly, is the fashion and luxury goods sector, which in recent years has seen increased barriers to exports to the US market, one of the most significant globally for European fashion houses. This is why, now that European fashion knows what tariffs await it in the US, the first reactions have arrived.

European fashion knows what duties await it

At the heart of the agreement is the introduction of a flat 15% tariff on most goods traded between the two sides of the Atlantic. Ansa reports. This compromise will involve strategic sectors such as automotive, agri-food, luxury goods, pharmaceuticals , and semiconductors , putting an end (at least for now) to the cycle of cross-taliation. The “most favored nation” clause, a principle of the WTO (the World Trade Organization), which guarantees fairness between trading partners, has also been reinstated. Despite some exceptions, such as steel and aluminum, which remain subject to higher tariffs, the agreement represents an important step toward stabilizing trade worth over €1.4 trillion annually. For fashion and luxury goods, news of the agreement between von der Leyen and Trump has put a stop to the risk of differential or disproportionate tariffs, as has happened in the past with flagship products. Indeed, comments have been forthcoming.

Article courtesy of La Conceria.