The United States has imposed new tariffs of up to 25% on imported leather goods from the European Union, escalating trade tensions between the two economic powerhouses. The move is part of a broader tariff increase on steel, aluminum, and various manufactured products. In response, the European Commission is preparing countermeasures to shield its leather industry from economic losses.
The trade dispute dates back to June 2018, when the Trump administration first introduced tariffs on EU exports, including certain leather products. The EU responded by imposing countermeasures on US goods.
In 2021, both sides agreed to suspend their respective tariffs to negotiate a long-term solution. However, the US has now reinstated these tariffs, citing economic protectionism and concerns over global trade imbalances.
The new US tariffs will significantly impact European leather goods exports, affecting Leather handbags, Leather wallets and accessories, Leather footwear, Finished leather used in furniture and automotive interiors
The European leather industry, which exports billions of euros worth of products to the US annually, now faces increased costs and potential losses.
Importers in the US will have to pay additional duties, which could lead to higher prices for consumers and reduced demand for European leather brands.
To counteract the US tariffs, the European Commission has reinstated suspended tariffs from 2018 and 2020. This means American leather products, including US-made leather goods, Luxury leather accessories, Raw hides and semi-finished leather exports to the EU
will now face increased import duties in Europe. The EU has also launched a consultation process with stakeholders to decide on further measures targeting €18 billion worth of US exports.
