// Items made in the UK will be subject to 25% tariffs when selling in the US market
// New tariff takes effect on October 18
// Follows WTO ruling that the US could impose tariffs on European goods
UK retailers that produce their items in Britain will be will soon be subject to 25 per cent tariffs when selling in the US market.
The tariffs take effect from October 18.
It comes after the World Trade Organization (WTO) ruled yesterday that the US could impose tariffs on $7.5 billion (£6 billion) worth of imported European goods.
In retail, the decision will particularly affect fashion retailers that produce their clothing in the UK – especially luxury retailers.
Savile Row retailers and retailers that specialise in making their knitwear, cashmere clothing and coats in the country will also be adversely affected.
When the WTO’s ruling was first announced yesterday, shares in many luxury companies stumbled as fears were raised about price rises as a result of the tariffs.
Other UK-made products on the tariff list include bedding products, pyjamas, aircraft, Scottish whisky and butter.
Retailers that operate and create their products in the EU, such as Louis Vuitton parent company LVMH, Gucci parent company Kering, and Versace are also subject to the tariffs.