After months of tensions and threats of new tariffs, the European Union and the United States have reached an agreement that averts a further escalation in their trade dispute. The deal, struck at Turnberry between European Commission President Ursula von der Leyen and US President Donald Trump, sets a unified customs tariff at 15%. While high, this figure remains well below the punitive peaks previously announced by Trump. Among the sectors most affected is undoubtedly fashion and luxury, which in recent years has faced mounting export barriers to the US—one of the most important global markets for European maisons. This is why, now that European fashion knows what tariff awaits it in the US, reactions have begun to emerge.
European fashion now knows what tariff to expect
At the heart of the agreement is the introduction of a fixed 15% tariff on the majority of goods traded across the Atlantic, according to ANSA. This compromise will affect strategic sectors such as automotive, agri-food, luxury goods, pharmaceuticals, and semiconductors, effectively bringing an end—at least for now—to the cycle of tit-for-tat tariffs. The “most favoured nation” clause, a key WTO (World Trade Organization) principle ensuring equal treatment among trade partners, will also be reinstated.
While certain exceptions remain—such as for steel and aluminium, which will still be subject to higher tariffs—the deal marks an important step towards stabilising transatlantic trade, which exceeds EUR 1.4 trillion annually. For fashion and luxury, the news of the von der Leyen–Trump agreement has put the brakes on the risk of disproportionate or targeted duties, such as those previously imposed on flagship products. And reactions have not been long in coming.
Cucinelli and Arnault respond
Brunello Cucinelli, long regarded as a voice of reason in the industrial world, commented on the prospective deal in the Financial Times: “There are things we cannot control, like the weather or tariffs. In such cases, one must accept them gracefully and carry on. US tariffs are beyond our influence”. Bernard Arnault, chairman of LVMH, was more pragmatic in his comments to Le Figaro, underlining the importance of striking a deal—even an imperfect one. “Better a deal than a trade war. It was crucial to reach an agreement, just as Japan has done.
Maintaining smooth relations with the United States, our top market, is essential for many of our businesses. An open conflict would be extremely damaging, particularly for European and French entrepreneurs. Dialogue may be difficult, but it’s the only viable path forward”. After years of uncertainty, the fashion industry can now begin planning with a little more peace of mind. Though the “tariff roulette” has stopped at 15%, the game is far from over. For now, though, diplomacy has prevailed.
Photo: EC AV Portal
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