Clothing from the EU will not face increased tariffs, the US has confirmed.
In a Notice of Modification of the Section 301 Action issued by the United States Trade Representative (USTR), clothing is among a list of products where tariffs remain unchanged. They will stay at 25% despite earlier threats of tariffs being increased.
The tariffs are a result of an ongoing aircraft subsidies dispute with the EU.
In December, the US said it was considering additional tariffs on EU goods in an ongoing row over aircraft subsidies, building on a move earlier in the year that saw some clothing exports hit by additional duties of 25%. In October, the US slapped tariffs on US$7.5bn worth of goods it imports from the EU including clothing. The decision came after it was given the green light by the World Trade Organization (WTO) to impose tariffs ranging from 10-25%.
The American Apparel and Footwear Association (AAFA) expressed its disapproval at the threatened tariff hike in a letter to the US Trade Representative (USTR) Robert Lighthizer, in which it said, while it agreed with the US government’s objective of eliminating illegal subsidies for Airbus, it was “stumped” as to how imposing taxes on US imports of clothes, textiles and accessories would accomplish that goal.