The American Apparel and Footwear Association (AAFA) has raised concerns about the potential return of retaliatory tariffs that are unrelated to steel and aluminium. In an open letter jointly addressed to European Commission President Ursula von der Leyen and US President Joe Biden, the AAFA has called for the permanent removal of these punitive tariffs during the next Presidential Summit in October.
In 2018, in retaliation against US tariffs on EU steel and aluminium, the latter imposed a 25 per cent tariff on a range of American goods, including clothing, amounting to US $ 7.5 billion. Although this tariff was temporarily suspended in 2021, it is set to expire in January 2024.
The AAFA contends that the apparel industry, its suppliers, and supply chains bore the brunt of these tariffs, despite the disputes being unrelated to their sectors. They acknowledged the relief provided by the suspension of retaliatory tariffs in 2021, which aided economic recovery post-COVID-19.
However, concerns have arisen regarding the possible reintroduction of these tariffs in January and the potential imposition of a second round of tariffs. Eighty-five organisations representing affected industries have advocated for the permanent removal of retaliatory tariffs on all non-steel and non-aluminium products.
The open letter states: “At a time of increased geopolitical tensions and volatility, the permanent removal of tariffs on unrelated sectors will support efforts to grow the transatlantic economy and enable our sectors to play a full part in addressing global challenges.”
The AAFA also expressed their readiness to support collaborative efforts between the EU and the US
