Last week, we were worried. The World Trade Organization finally ruled that the Trump Administration could impose tariffs on $7.5 billion of goods from the E.U., and the Administration planned to act fast, targeting aircraft parts and luxury goods. For our breakdown of the situation, read: Are Trump Administration Tariffs Bad News for the Luxury Market?.
For now, we can all breathe a sigh of relief. Right after the WTO announced their decision last Wednesday, the U.S. Trade Representative decided to levy tariffs on aircraft and luxury foods such as wine, spirits, olives and dairy products from Europe. But leather goods were spared—we can all breathe a sigh of relief. For now, it looks like U.S. consumers will be paying extra on imported foods but not fashion, though it’s not set in stone until the WTO gives final authorization in the next few weeks. The details are in Fortune.
That said, we’ll still have to keep watch in the coming weeks and months. These trade disputes get messy quickly and have a habit of changing in the blink of an eye. Let’s just hope luxury leather goods stay out of it—for the sake of U.S. consumers and for the European brands that would certainly be negatively impacted.
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Photo courtesy of @jan_patamapun. (Just think of all the Hermès bags that have been spared…)