The European textile sector is holding its breath. In the 180° event, US President Donald Trump announced a 90-day “suspension” on Wednesday at mutual tariffs excluding China.
EU products entering the US will be subject to 20% surftax if he carries out his threat.
We took the pulse of the textile sector at a time of uncertainty.
“European textile and clothing exports (to the US, editor’s note) represent around 7.5 billion euros a year. So if Trump maintains a 20% surftax, that means a tariff of 1.5 billion euros.” Dirk Vantyghem, director of the European Apparel and Textile Confederation (Euratex), explains.
Italy, France and Portugal, the leading figures in Europe, are likely the most affected European countries in the sector. Some customers are ready to pay extra costs, but haute couture is a particularly big hit, “Because it’s the best” He adds.
Influx of Asian products
Even more worrying, textile production in Asian countries that are not exported to the US could lead to another country redirecting towards the European market.
“If this tariff barrier is established in China, Cambodia and Vietnam, the supply of Asian-made clothing that has been pushed up to the European market will be greater. says Dirk Vantyghem.
He doesn’t expect any impact on prices, but he sees “Capacity issue”, It could put pressure on European manufacturers.
Recognizing this threat, European Commission President Ursula von der Leyen declared in an interview with the Finance Times that he would not tolerate the influx of Chinese products into the European market and would not take “protective measures” if necessary.
The European Apparel and Textile Union is urging the committee to support the dialogue over escalation to avoid falling into a vicious circle of defeat.
Especially in Europe’s textile industry is already weakened. “Energy Price” According to Euratex, the cost of adhering to the European Union’s strategy on sustainable circulation fibers adopted in 2022.
Supply Chain Disruption
This new situation could also restructure the supply chain.
Additional tariffs on Chinese products have risen to 145%.
Donald Trump has announced 90-day breaks in 75 other countries, but in world workshops there is Damocles’ sword hanging from his head. If these threats are implemented, the tariffs they face are particularly high. In Bangladesh, it is 37% and in Vietnam, it is 46%.
“The major European brands are considering these tariffs and rethinking their sourcing options.” says the managing director at Euratex.
India and Turkey have taken the lead. Once applied, the additional fee will be 26% and 10% respectively. Therefore, some clothing companies can try to move production there.
