UK produced clothing, to include women’s outerwear, swimwear, men’s suits, cashmere and wool items, bed linen and handbags, will be subject to 25 percent tariffs when sold in the US market.
This will take effect from October 18th 2019, in addition to the normal duties which will apply.
The World Trade Organisation (WTO) ruled on Wednesday that the US could impose tariffs on 7.5 billion dollars (6.1 billion pounds) worth of European goods. It is the largest arbitration award in World Trade Organization (WTO) history.
This is part of the ongoing dispute between the USA and the EU over subsidies granted to both Boeing and Airbus. The USA has threatened to introduce the tariffs as early as October 17th 2019. It has been confirmed that these tariffs will apply even if the UK leaves the European Union, with or without a deal.
In addition to the huge uncertainty over Brexit, this is likely to have an unwelcome and significant impact on UK based manufacturers and brands that currently export to the US.