Trump’s 30% tariff on EU Products: a triple threat to european fashion
President Trump’s decision to impose a 30% tariff on European Union (EU) exports has raised serious concerns across the textile and fashion industry. The impact of this move is undeniable, and experts are calling it a triple threat to the EU’s second-largest export market.
€7.4 Billion in Exports at Risk
The 30% tariff directly targets €7.4 billion worth of EU textile and fashion exports. This could lead to an additional €2.2 billion in tariffs that someone will need to absorb. The question remains: who will bear this burden? It could either be the American consumer or the European exporter, but the reality is that this added cost will likely harm both parties. Without a resolution, EU businesses may have to reconsider their presence in the American market, which remains their second most important export destination.
Trade Diversion to Asia
In response to the rising tariffs, manufacturers from China and other Asian countries are already shifting their focus towards the European market. This has led to a surge of low-priced goods, creating an oversupply that undermines European producers. The growing influx of cheaper alternatives threatens the competitiveness of the European textile and fashion industry, making it even more challenging for local businesses to survive.
Plummeting Consumer Confidence
The uncertainty surrounding these new tariffs is affecting consumer behavior. With so much unpredictability, people will be holding off on purchases, leading to a decline in demand for fashion products. As a result, the fashion segment faces a significant dip in sales, and European retailers are bracing for tough times ahead.
A Call for Cooperation
The European Apparel and Textile Confederation (EURATEX) has urgently called on both EU and US leaders to work together to find a solution that benefits both sides. With the situation continuing to worsen, EURATEX stresses the need for a win-win agreement before the August 1 deadline.
