Starting from October 18, 2019, British-made Cashmere pullover sweaters, hooded cold jackets (anoraks) and swimwear and other products exported to the United States will be subject to an additional 25% tariff. This attack is an extension of the dispute between the United States and the European Union over improper subsidies to civil aircraft manufacturers.
In early October, the United States obtained WTO agreement to impose an additional 10-25% tariff on US$7.5 billion worth of EU imports to the United States (including clothing). Most tariffs apply to imports from countries involving illegal subsidies, such as France, Germany, Spain, the United Kingdom, etc.
This move stems from the escalating trade dispute with the United States caused by the EU’s illegal subsidies to Airbus. The World Trade Organization (WTO) found that this has caused serious damage to the interests of the United States. . The full list of affected products was published in the Federal Register on October 18 and includes sweaters, pullovers, sweatshirts and similar knitted, crocheted or wool or cotton items, women’s hooded cold weather jackets and girls’ Hooded winter jackets, swimwear and men’s or boys’ suits made of wool or man-made fibres.
The terms covered by additional tariffs will vary from country to country – but the UK is the only country where textiles are subject to additional tariffs.
Specifically, British-made Cashmere pullover sweaters, hooded cold jackets (anoraks) and swimwear exported to the US market will be hit by an additional 25% tariff. This is an additional tariff on top of the normal tariff.
The UK Department for International Trade stated that the British government has made it clear that resorting to tariffs is not in the interests of the UK, the EU or the United States.
We are working closely with the U.S., EU and European partners to resolve the dispute between Airbus and Boeing through negotiations. We also seek confirmation from the WTO that the UK fully abides by and supports the WTO’s ruling on Airbus, but the UK should not be subject to additional tariffs.
Adam Mansell, CEO of the British Fashion and Textile Network UKFT, called on both parties to resolve the dispute as soon as possible: When the impact of Brexit leaves the industry facing huge uncertainty, Imposing such high tariffs in one of our major non-EU markets on products unrelated to the aircraft dispute would have devastating consequences. Some of our major manufacturers will be hit by punitive tariffs, which will undoubtedly affect employment and investment in the industry.
Simon Cotton, CEO of Johstons of Elgin, the UK’s largest Cashmere knitted garment manufacturer, said that tariffs will have a significant impact on the British knitted garment industry.
The United States is our third largest export market after Europe and Japan. This will have a significant impact on our knitwear business and the UK knitting industry as a whole. American consumers love high-quality British knitwear and we would urge all parties to reach an agreement quickly for the sake of British manufacturers and American consumers.
