On 27 July 2025, the United States and European Union formalised a new trade framework that introduces a maximum tariff of 15% on EU-origin goods entering the US unless the MFN tariff rate for the commodity code is higher.What Has Been AgreedIf a US Most Favoured Nation (MFN) tariff is below 15%, then the EU export faces the 15% ceiling.For example, a knitted hat with a commodity/HS code of 6505.00.15 has an MFN tariff of 7.9% which is less than 15% and would now become 15% when entering the US if the hat is of EU origin.If the MFN tariff is above 15%, then only the MFN rate applies - no stacking or additional duties.For example, women's cotton trousers with a commodity/HS code of 6204.62.80 has an MFN tariff of 16.6% which is more than 15% and would continue to be 16.6% when entering the US if the trousers are of EU origin.This replaces the previous framework, where tariffs and additional tariffs were stacked and reach extremely high overall ratesConsiderations for UK Fashion & Textile BusinessesUK businesses exporting EU originating goods may benefit from reduced tariff exposure when entering the US.EU-based manufacturing or finishing operations may now see improved competitiveness in transatlantic markets.The 15% ceiling does not apply to UK-origin goods, so UK exporters should continue to refer to existing UK-US arrangements, including MFN tariffs plus the additional 10% baseline.Official ConfirmationDetails have been confirmed theEuropean Commissionand theWhite House.UKFT members with questions should emailinfo@ukft.orgUKFT International Business SupportAs part of UKFT membership, wehelp UK companies to navigate changing markets, understand complex global trading arrangements andcomply withinternational regulations.FIND OUT MOREUKFT Compliance SupportAre you looking for compliance advice? As part of UKFT membership, we offer practical, business-focused support to help UK fashion and textile businesses navigate regulatory compliance across global markets. Our team works to ensure your business is informed, prepared and aligned with current and upcoming legislation affecting the UK fashion and textile industry.FIND OUT MORE
