British and European luxury brands — hoping to duck out of the crossfire of the Airbus-Boeing trade fight — are requesting he Trump administration to adjust the 25 percent tariffs set on many luxury goods imported to the US
Washington raised the import tariff on certain high-end goods from Europe to 25 percent, hitting cashmere knitwear, merino wool and Savile Row suits hard and in retaliation for subsidies paid to manufacture the Airbus fleet of planes. The move was sanctioned by the World Trade Organization and the US has the right to review and tweak the tariffs, which could go as high as 100 percent, every 180 days.
The EU, which has accused the U.S. of aiding Airbus competitor Boeing, might also retaliate with tariffs of its own on U.S. made goods.
Beth Hughes, Vice President-Trade and Customs Policy, American Apparel & Footwear Association, said this dispute has already caused a negative impact on the industry. This retaliation only hurts those American workers by raising costs, costs which are passed on to U.S. consumers in the form of higher prices, which, in turn, lowers sales.
