The US will work with the European Union on eliminating tariffs between the two regions. Makers of blue jeans in the US have to pay an eight per cent duty rate to import Italian denim. The cost of these goods, if duties were off, would be down significantly.

In 2017, the United States exported textiles and apparels worth $2.6 billion to the European Union while importing $5.5 in textiles and apparel from the EU. Eliminating tariffs would put US companies on par with countries such as South Korea, which already has a free trade agreement with the EU. Japan has signed a free trade agreement with the European Union. Mexico and the European Union have agreed in principle to an updated free trade agreement.

So , US manufacturers don’t want to be at a disadvantage. In the meantime the US has spent months threatening or imposing tariffs on various imports from China, Canada and Mexico. Chinese and US textile and apparel organisations are concerned about the escalating trade tensions and have voiced their opposition to protectionism. Tariff increases are not just a tax on consumers but also bring uncertainty to the supply chain for brands. Top brands depend a lot on a stable global supply chain.