Remember the U.S. threat of tariffs on imported French goods? (Read: Is the Tariff Threat to Luxury French Handbags Back) Well, it’s back… or, perhaps more accurately there’s a new threat. In retaliation for French taxes that largely affect U.S. technology companies, the United States announced the imposition of tariffs on $1.3 billion of French goods, including cosmetics, soap, and, you guessed it, HANDBAGS. (Read more: US Will Impose Tariffs on French Goods in Response to Tech Tax) Apparently, sparkling wine and cheese is exempt this time.
And wait til you hear just how much of a tax they’re talking about . . . 25%! Imagine adding that to the already dear cost of coveted bag. That $10,000 bag becomes $12,500 plus tax. As if the mid-pandemic price hikes of some of your favorite French brands (Chanel, Louis Vuitton, Dior) wasn’t enough, this will really stress your wallet. (Read: Chanel Price Increase Confirmed For USA: Here Are the Prices)
The only saving grace for the moment is that the United States is suspending enforcement (and collection) of this tariff until January 2021. This delay is intended to give the countries time to negotiate.
Fingers crossed the tariff threat blows over again. But, it leaves us wondering… will a 25% increase due to tariffs stop you from buying? And are you accelerating any purchases now, just in case. Let us know.
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