Donald Trump decided to impose a 25% duty on French fashion goods. Among those included in the list are also handbags (luxury ones made with exotic leather included).
The decision could bring US imports down if an agreement isn’t reached between the White House and the French government by the end of the year.
This time the Airbus vs- Boeing dispute has nothing to do with it, and Italian goods could be Trump’s next focus area.
25% duty
The US government announced its decision to put a 25% duty on 1.3 billion USD of French imports coming in the country. The choice is in retaliation on the 3% digital tax imposed by France on US tech-giants.
Mr. Trump considers taxing US companies, such as Facebook, Google and Amazon, an injustice. The duties will become active on January 6th, 2021. WWD points out that a first draft written for the duties was considering a value of 100% and that the list of goods included was much larger.
Chain reaction
The duty imposed by the Trump administration, if it goes live, would mean a reduction in sales’ volumes of French handbags in the USA.
Many of those are made in Italy, and moreover: the announcement of the US president sounded like a warning for other European nations that announced the digital tax.
For example: Italy, Spain, Austria and Great Britain, and as of today it’s impossible to exclude that the trade war won’t hit Italy directly as well.
Lastly, the USA and Europe are still to resolve the conflict that has risen over another matter: that of the help being received by Airbus and Boeing.
Read also:
- USA – EU Trade War gains speed: leather handbags at risk
- FFANY and FDRA merge to strengthen US footwear
