logo
ENFRع
#

Latest news with #EUexports

Tariffs at 30 Percent Would Be a Tipping Point for European Furniture- and Lighting-makers
Tariffs at 30 Percent Would Be a Tipping Point for European Furniture- and Lighting-makers

Yahoo

time4 days ago

  • Business
  • Yahoo

Tariffs at 30 Percent Would Be a Tipping Point for European Furniture- and Lighting-makers

MILAN — Will a tariff-for-tariff battle play out on both sides of the Atlantic or will the EU be able to broker a deal and avert crisis? That is top of mind for Italian furniture and home industry leaders, as a 30 percent duty on exports as early as Aug. 1 would be a dramatic blow to business. Until now, firms have held strong and pledged, for the most part, merely to raise prices for the U.S. consumer. The consequences will be severe and impact jobs and growth if duties rise even further, design pillars said after U.S. President Donald Trump posted letters to Truth Social detailing the new duty rates for Mexico and the 27-member European trade bloc on July 12. More from WWD Trump Trade Deal Revealed: Indonesia Shoe Imports to US Will Face 19 Percent Tariff Rate Shoe Prices Dip in June but Tariff Pressures Could Lead to Increases Later This Year, FDRA and AAFA Say President Trump's Tariffs Spark Reactions in Italy According to Claudio Feltrin, president of FederlegnoArredo, the Italian federation of woodworking and furniture industries which represents the majority of Europe's luxury furniture-makers, being subject to Trump's whims is dismaying. 'Faced with the news of Trump's decision to introduce 30 percent tariffs on EU exports to the U.S., we can only be concerned and alarmed. Europe must avoid a tariff-against-tariff battle that would benefit no one,' Feltrin said, adding that the entire European production system would be severely impacted. The Italian wood-furniture sector's second largest market by export value is the U.S. 'Failing to defend our businesses now could result in the industrial desertification of the Old Continent,' he added. The Lighting Sector Bears Additional Tariffs Carlo Urbinati, who is also president and chief executive officer of Italian lighting house Foscarini and president of the Italian lighting association Assoluce, also said the lighting sector would certainly be severely impacted if the currently declared tariff levels were to remain in place beyond Aug. 1. The lighting sector also bears the added burden of the 50 percent tariff on aluminum and steel, already in place. 'This situation makes it decidedly difficult for companies to maintain market share in the U.S., especially for technical and outdoor/public lighting, where the share of aluminum and steel is significantly higher,' he warned. Foscarini had already updated its U.S. price lists with an initial 7.5 percent increase after the initial announcement and is ready to update that percentage upwards to 10 and 12 percent, taking into account the weak dollar, which has dropped approximately 10 percent over the last six months. Confartigianato – the lobbying group that supports artisans and 1.5 million businesses, 12 trade federations and 41 craft associations, including those representing furniture, decor and fashion –estimates the nominal value of the impact at risk at 17.8 billion euros in exports from Italian micro and small businesses that trade with the U.S. Small and micro businesses represent a large part of the industrial backbone of the Italian economy. What Sets Italy Apart? Italy's top markets outside of the EU are China and the U.S. Its exports to China have suffered, due to a consumer spending slowdown amid a housing and economic slowdown. The U.S. market faces additional pressures, like the declining dollar, which hit its lowest point against the euro in four years at the end of June. Andrea Sasso, CEO of Dexelance, which is home to upscale brands like Meridiani, Turri and lighting-maker Davide Groppi, was concerned about the combined effect of the further devaluation of the dollar and the increased tariffs. 'Not so much because of the size of the increase itself, but because of the general uncertainty that this combination might generate in the market,' he said. Sasso added that instead of raising its prices, it has introduced a 'custom tariffs' declaration on its invoices, which detail the monetary impact of duties, guaranteeing transparency. 'We intend to maintain this same approach even if the tariffs were to rise to 30 percent,' he said. In 2024, turnover of Italy's wood furnishing sector, which represents the makers and brands that fuel the wider luxury furnishings sector, reached 51.7 billion euros. In a trade note in March, national statistics bureau Istat examined Italy's exposure to the U.S. vis-à-vis exports amid the global escalation on trade. The report said that furniture accounts for 2.5 percent of all of Italy's goods exported to the U.S. The U.S. is Italy's largest trade partner outside of the EU; Italian exports to the U.S. accounted for 10 percent of all goods, in-line with those exported to Germany but higher than those traded with France and Spain. The EU and the U.S. are each other's largest trading partners by far, according to the European Commission. A Fatal Blow for U.S. Manufacturers Trump supporters are hoping trade policy will reinvigorate Made in America and its domestic supply chains, which saw its manufacturing prowess decline significantly in the 1970s and 1980s and beyond. At that time, companies began shifting production outside the U.S., facilitated by trade agreements with China and the entry of China into the World Trade Organization. For now, Trump's administration has secured investments in the U.S., like a $14 billion investment from Japan's Nippon Steel that he said will create at least 70,000 jobs and will ensure steel is made in America for decades to come. Today, companies that survived the Made in America crisis of the 1980s and '90s are feeling the burn and raising concerns about Trump's economic agenda. Tariffs dealt a fatal blow to the furniture pulse of Eastern Michigan, shuttering the doors of two historic names: the Howard Miller Company and Hekman. Press reports in July indicated that Michigan-born Howard Miller, which took over Hekman, also born in Michigan, in 1983, will halt operations, with plans to shutter its doors by next year. Since the dawn of the housing market downturn, Howard Miller's sales suffered due to higher tariffs, resulting in unsustainable costs for materials and components, according to various local news outlets. The Retail Effect Luca Fuso, CEO of Haworth Lifestyle's Design Division, which includes upscale design firm Cassina, confirmed that a 30 percent tariff would diminish sales to the U.S. across the board. 'The effect of Trump's letter is to freeze any purchases from the U.S. during the current month and to increase prices for the final customers once the tariff is finalized and applicable, thus reducing the sales potential of EU brands for the future,' he said. Fellow furniture-maker Boffi|DePadova's top market is the U.S. and it recently opened a sprawling flagship on New York City's Madison Avenue to cater to its growing American clientele. Its CEO and president Roberto Gavazzi has said that Italian high-end companies are better positioned than others to battle the crisis as they are not in direct competition with American producers, but expressed concern over recent developments. 'This [tariffs] is still under negotiation and we need to be careful in making comments about how things will go. If the 30 percent tariffs [happen, it ] will certainly affect every business. Every evaluation will be made after this becomes a certainty,' he warned. Despite the obstacles, the U.S. market remains strategic for fellow luxury furniture firm Giorgetti. Their CEO Giovanni del Vecchio confirmed the company will press forward with planned investments, including the opening of a new flagship store in Miami, and will strengthen its presence in key cities such as New York, Houston, Boston and Washington, D.C., alongside selective distribution through around 10 leading multibrand retailers. A Glimmer of Hope Furniture-makers are still holding out hope as the EU continues to weigh its options with the goal of reaching some sort of middle ground. Economists have said that the EU has a few negotiating chips to play, like offering to boost its imports of U.S. military equipment, reduce tariffs and restrictions on U.S. imports like cars and negotiate down the U.S. goods trade deficit with the EU, which swelled to $235.6 billion in 2024, according to U.S. government data. The EU, on the other hand, has a trade surplus with the U.S., which stood at 17.9 billion euros in December 2024. Trump's letter to the EU included a demand that Europe drop its own tariffs. 'The European Union will allow complete, open market access to the United States, with no tariff being charged to us, in an attempt to reduce the large trade deficit,' he wrote. European Commission president Ursula von der Leyen said the 30 percent tariffs 'would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic.' Growth Prospects Market drivers for the Italian economy remain. According to economists at Istat, the Italian economy is expected to grow 0.6 percent in 2025 and 0.8 percent in 2026, supported by domestic demand though a 'negative impact of tariffs on global trade and international growth prospects is still assumed.' Feltrin and business owners here are also banking on growth in the Middle East in new frontiers in Saudi Arabia and the United Arab Emirates. Though new markets, such as Southeast Asia and the Middle East, are expanding their adoption of design, Fuso cautioned that this won't be enough to weather the storm. 'We cannot consider the upside of one area as offsetting the loss of another. The tariffs are surely a mighty blow to Italian design in a relevant and mature market as the United States and this will affect the overall growth of brands worldwide,' he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

US threatens EU with 17% tariff on food exports
US threatens EU with 17% tariff on food exports

Irish Times

time05-07-2025

  • Business
  • Irish Times

US threatens EU with 17% tariff on food exports

The US has threatened to hit EU agricultural exports with 17 per cent tariffs in a twist to its trade conflict with Brussels, three people briefed on the discussions said. Such tariffs would hit everything from Kerrygold butter to Belgian chocolate and olive oil from the Continent, all of which are big sellers in the US. The eleventh-hour move, which EU officials characterised as an escalation of the transatlantic dispute, came ahead of a July 9th deadline to agree a deal between the two trading giants. US president Donald Trump imposed a 20 per cent 'reciprocal' tariff in April but reduced it to 10 per cent until July 9th to allow for talks. Until recent days, EU officials had been expecting that talks with the US would hold duties at the baseline rate. It was unclear if the 17 per cent on foodstuffs would be in addition to the other tariffs announced by Mr Trump or instead of them. Mr Trump has demanded that Brussels give American companies wide-ranging exemptions from regulations and cut its trade surplus with the US, but EU officials have rejected Washington's latest proposals on any such exemptions and food tariffs. [ Is Big Pharma lobby shielding Ireland from the worst of US tariffs? Opens in new window ] The EU is trying to secure its own carveouts for some products. One Brussels official said aircraft parts and spirits are among goods for which the bloc is seeking exclusions. They said that the two sides were working on a five-page draft 'agreement in principle', but this has very little agreed-upon text in it. Ursula von der Leyen , the European Commission president, said on Thursday that she hoped for an agreement in principle that would allow the sides to keep talking pending a final deal. However, Washington is pushing countries to agree binding deals by Mr Trump's deadline. Maroš Šefčovič, the EU trade commissioner, was warned of the proposed 17 per cent duties on agri-food on Thursday during meetings in Washington. The 27 member state ambassadors were informed on Friday. The value of EU agri-food exports to the US, including products such as wine, totalled €48 billion last year. Mr Šefčovič has repeatedly characterised the changing of EU regulations to suit the US as a red line. However, the EU is also on a deregulatory drive, weakening some environmental laws. EU countries are divided between accepting some higher tariffs in return for a period of certainty and those who wish to retaliate to put pressure on the US to compromise. Friedrich Merz, chancellor of Germany, the EU's biggest and most export-dependent economy, has been pressing the commission, which runs trade policy, to settle for a quick deal. He is anxious for exemptions from Mr Trump's sectoral tariffs of 25 per cent on vehicles and 50 per cent on steel. However, several ambassadors intervened in Friday's meeting to press for stronger action against Washington, said two people briefed on the meeting. Two EU diplomats said they had been told that the US had sketched out three scenarios for July 9th: Countries with an 'agreement in principle' would keep the 10 per cent tariffs, with possible further tariff relief at a later stage; for countries that failed to reach such an agreement, the tariffs would return to the level announced in April until a deal was struck; higher tariffs would be applied to countries that the US believes are not negotiating in good faith. As the EU prepares its possible retaliation for US duties on its products, member states have already approved counter-tariffs on €21 billion of annual US exports from July 14th. The commission is assembling a package of €95 billion more, including on aircraft and food. A commission representative said: 'The EU position has been clear from the outset: we favour a negotiated solution with the US, and this remains our priority ... At the same time, we are preparing for the possibility that no satisfactory agreement is reached.' The White House has yet to respond to a request for comment. – Copyright The Financial Times Limited

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store