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UKFT update on US tariffs (April 2025)

03/04/2025

President Trump has issued an Executive Order introducing new tariffs on virtually all imports into the US. Read the details here

The new tariff regime will have a direct impact on the UK fashion and textile industry:

  • There will be an additional 10% tariff on all imports from the UK into the US, starting on 5 April 2025. The additional 10% tariff will be on top of existing tariffs so a current duty rate of 0% becomes 10%, an existing duty rate of 6.4% would become 16.4% and so on. For some key exports to the US, such as cashmere fabric, the duty rises from 25% to 35%.
  • There are higher tariffs on imports from other countries, many of which are important sourcing countries both for retailers and brands selling into the US but also supplying raw material to US manufacturers.

These include:

  • Bangladesh 37%
  • China 34%
  • EU 20%
  • Pakistan 30%
  • Vietnam 46%

(Read the full list here)

These additional tariffs will apply to fashion and textiles shipped directly from these supplying nations to the US. In addition, it is UKFT’s understanding that, for example, goods manufactured in Vietnam, imported into the UK and then re-exported to the US would attract the additional 46% duty. Please note: We are seeking clarification on this as there is not enough detail in the Executive Order.

 

Other important issues to note:

  • The Executive Order allows the US to increase tariffs even further if country retaliates with its own increased tariff on US goods.
  • The Executive Order makes it very clear that the de minimum rule will come to an end very soon. (The de minimus rule allows duty free import into the US of individual items with a value below $800.) The de minimus rule on imports from China into the US was removed in a separate Executive Order on 2 April 2025 (details here).

 

What is UKFT doing:

  • We are working with the Department for Business and Trade (DBT) to advocate for tariff-free access for UK fashion and textiles into the US market and to support our vital global exports
  • UKFT is gathering data from members to present a clear picture of the situation to government
  • We are liaising with Euratex, the European Apparel and Textile Confederation, and The American Apparel & Footwear Association (AAFA) to understand the impact of the tariffs.
  • We will update further as the situation develops.

 

Adam Mansell, CEO of UKFT, said: “The US is the UK’s second largest export market for fashion and textiles and the new US tariff regime will benefit no-one. It will lead to reduced exports from the UK and will impact UK fashion and textile manufacturers, at time when they are already facing unprecedented cost increases. Although the 10% tariff on UK exports is lower than the 20% on EU products, it adds to existing tariffs, making some luxury fabrics from the UK subject to a 35% tariff in the US. At the same time, UK retailers and brands that manufacture in countries such as Vietnam and Bangladesh and ship directly to the USA will face huge increases in costs. The new US tariffs will also mean increased prices for US consumers, and it will make the cost of raw materials for US manufacturers more expensive.”

How you can help:

  • Media relations: Would you be willing to speak to the press about the impact of the new U.S. tariffs on the UK fashion and textile sector? UKFT member businesses that are open to being a spokesperson on the issue, please let us know – we would appreciate your support in raising industry concerns.
  • Share case studies and data: If your business or brand is affected by the new US tariffs, please share evidence and data with UKFT to allow us to create a clear picture of the impact on our sector.

UKFT members: Please get in touch via info@ukft.org