The European textile sector supports breathing. At the bend of 180º, US President Donald Trump announced on Wednesday a 90-day “break” in mutual tariffs except China.
If his threat was implemented, the EU products entered the United States, which will be subjected to 20%.
At the time of uncertainty, we took an impulse to the textile sector.
“The European export of textiles and clothing (for the United States) is about 7.5 billion euros per year. Therefore, if Trump retains an additional payment of 20%, this means 1.5 billion euros in customs rights, ”explains Dirk Vantigem, general director of the European Confederation of Clothing and Textile (Euratex).
Italy, France and Portugal, the textile of the spear in Europe will probably be the most affected European countries in this sector. Host-Couture will be especially affected, although some customers are ready to pay additional costs, “because this is the best product,” he adds.
The influx of Asian products
More alarming is the fact that the textile production of Asian countries, which is somehow exported to the United States to be redirected to the European market.
“If this tariff wall is installed in China, Cambodia and Vietnam, there will be a greater offer of Asian production clothing put forward to European markets. Thus, indirect effects can be even more than a direct consequence of the payment of 20% of customs rights in the US markets, ”says Dirk Vantigem.
Although he does not predict any consequences of prices for prices, Dirk Vantigem predicts a “power problem”, which can exert pressure on European manufacturers.
Knowing this threat, the President of the European Commission Ursula von der Lein said in an interview with Financial Times that he would not tolerate the influx of Chinese products on the European market and without hesitation to take “protection measures”, if necessary.
For its part, the European Confederation of Clothing and Textile turns to the commission to give preference to dialogue about climbing, so as not to fall into the vicious circle of losses.
Moreover, the European textile industry has already been weakened by “energy prices” and the costs of compliance with the European Union strategy for sustainable and circular textiles adopted in 2022, Euramatex reports.
Violation of supply chains
This new situation can also redesign supplies chains.
Additional bets on Chinese products increased to 145%.
Although Donald Trump announced a 90 -day break for 75 other countries, there are a Damocles sword hanging over the heads in the world studios. If these threats are realized, the customs rights that they have to carry will be especially high: 37% for Bangladesh and 46% for Vietnam.
“The main European brands are considering these customs rights and revising their supplies,” says Euratex General Director.
India and Türkiye may be the first classified. In the case of use, the surcharge will grow to 26% and 10%, respectively. Thus, some clothing companies may be tempted to transfer their production to these countries.