The American Apparel & Footwear Association (AAFA) and the Council of Fashion Designers of America (CFDA) have welcomed a new US-EU trade framework that introduces a non-stacking tariff provision for reciprocal trade rates.
The agreement sets a 15% reciprocal tariff cap on most EU goods, and the rate will not be stacked on top of existing most-favoured-nation tariffs, which are already high for apparel, textiles, and finished goods.
AAFA and CFDA said in a joint statement: “We are grateful to US President Donald J. Trump, EU President Ursula von der Leyen, and the rest of the negotiating teams for ensuring that the new 15 percent reciprocal rate is not stacked on top of existing high most-favoured nation rates that the US fashion industry has long been paying on imports of inputs, equipment, and finished goods.”
AAFA and CFDA say this will bring some relief to American companies that have long faced steep import duties, with the measure expected to make US-made and imported clothing, shoes and equipment more affordable.
The organisations have called on the US to apply the concept to future deals to benefit the industry and workers.
