US suspends tariffs on UK fashion and textile exports

Britain and the United States said on Thursday they had reached an agreement under which Washington would suspend retaliatory tariffs on a variety of British goods and jointly ease a long-running fight over subsidies for Boeing and Airbus.

It is understood that the list of products subject to a 25% tariff includes cashmere pullovers , wool sweaters , swimwear and bed sheets made in the UK . During the four-month tariff suspension period , these products will no longer have to pay retaliatory tariffs, and the tariff suspension period will take effect on March 8, 2021 .

Adam Mansell, UKFT chief executive, said: “I am delighted that US Airbus tariffs on UK exporters have been suspended. Tariffs have cost UK fashion businesses dearly over the last year at a time when trading was already extremely challenging. We have been working closely with the Department for International Trade on this issue and we will continue to work with them to reach a permanent solution.”

Simon Cotton, chief executive of Johnston of Elgin , the UK’s largest cashmere knitwear producer, and a UKFT board member, said: “We are pleased to see these additional duties have been suspended. They will be removed in time for our main shipping season later this year. ”

He added: “We have absorbed these tariffs over the last year, which has been very costly for our business during a challenging time. The removal of these tariffs is very welcome news for us and gives us greater confidence to pursue continued growth opportunities in the U.S. market . ”

The conflict had dragged on for 16 years before Brexit, with Brussels and Washington each imposing punitive tariffs .

The United States has imposed a record $7.5 billion (RM30.4 billion) in tariffs on European goods under a World Trade Organization ( WTO ) mandate in the transatlantic trade dispute .

It is reported that since October 2019, tariffs on Scotch whisky and a range of other products have hit the lucrative US export market hard . Before the tax was imposed, the US Scotch whisky market was valued at £1.06 billion. By 2020, this figure had fallen by 32% to £729 million.

Currently, the tariff suspension period has come into effect. Many people have expressed the hope that the two governments will make this tariff suspension agreement a permanent solution.

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