European Fashion Industry Reacts to New US Tariffs Agreement

On August 4, 2025, European fashion industries received clarity regarding U.S. tariffs following a recent trade agreement between the European Union and the United States. After months of escalating tensions and threats of new tariffs, leaders from both sides, including European Commission President Ursula von der Leyen and U.S. President Donald Trump, convened in Turnberry to reach a consensus that avoids further trade conflicts. The deal establishes a uniform 15% customs duty on most goods exchanged across the Atlantic, a considerable reduction from the higher punitive tariffs previously proposed by the U.S. This agreement notably impacts sectors such as automotive, agriculture, luxury goods, pharmaceuticals, and semiconductors, effectively halting the cycle of tit-for-tat tariffs. The reinstatement of the World Trade Organization's 'most favored nation' clause aims to promote fair trading practices. While some exemptions, like steel and aluminum, will continue to face elevated tariffs, the pact marks a significant move towards stabilizing a trade volume exceeding €1.4 trillion annually. For European fashion and luxury brands, this development offers reassurance by preventing t...