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UKFT statement on new US ‘tech tax’ threat to UK goods

29/03/2021

The US has warned it could put tariffs of up to 25% on a host of UK exports in retaliation for a UK tax on technology firms.

These include women’s and girl’s dresses, men’s and women’s coats, men’s shirts, ties, shoes and jewellery, according to a list published by the Biden administration.

The duties are designed to raise $325m, the amount the US believes the UK tax will raise from US tech companies. The tariffs are now subject to a consultation in the US over the next few weeks.

Adam Mansell, CEO of the UK Fashion & Textile Association (UKFT), said: “It was only earlier this month that the US removed additional tariffs on some UK-made fashion products so it is hugely disappointing that yet again our manufacturers are threatened with additional tariffs, particularly as the trade dispute has nothing to do with our industry.

“At a time when we are trying to start discussions over a UK-US trade deal, it is extremely important that both governments get around the table to remove this threat as soon as possible. With the industry still struggling with the impact of Covid-19 and understanding the new trade arrangements with the EU, an additional burden on our exports couldn’t come at a worse time.”

The list includes:

6104.43.20 …………… Women’s or girls’ dresses, knitted or crocheted, of synthetic fibers, nesoi

6201.12.20 …………… Men’s or boys’ overcoats, carcoats, capes, & similar coats of cotton, not knit or crocheted, not containing 15% or more by wt of down, etc

6201.92.45 …………… Men’s or boys’ anoraks, windbreakers & sim articles nesoi, not knit/crochet, cotton, not cont. 15% or more by wt of down, etc, o/than rec perf outwear

6202.12.20 …………… Women’s or girls’ overcoats, carcoats, etc, not knitted or crocheted, of cotton, not containing 15% or more by weight of down, etc

6202.13.40 …………… Women’s or girls’ overcoats, carcoats, capes, cloaks and similar articles, not knitted or crocheted, of man-made fibers, nesoi

6202.92.90 …………… Women’s/girls’ anoraks, windbreakers & similar articles, nt knit/crochet, cotton, nt cont. 15% or more by wt of down, etc, o/than rec perf outwear

6204.43.40 …………… Women’s or girls’ dresses, not knitted or crocheted, of synthetic fibers, nesoi

6204.44.40 …………… Women’s or girls’ dresses, not knitted or crocheted, of artificial fibers, nesoi

6204.49.10 …………… Women’s or girls’ dresses, not knitted or crocheted, containing 70% or more by weight of silk or silk waste

6205.20.20 …………… Men’s or boys’ shirts, not knitted or crocheted, of cotton, nesoi

6215.10.00 …………… Ties, bow ties and cravats, not knitted or crocheted, of silk or silk waste

6403.59.30 …………… Footwear w/outer soles and uppers of leather, not covering the ankle, welt, nesoi

6403.59.90 …………… Footwear w/outer soles and uppers of leather, not cov. ankle, n/welt, for persons other than men, youths and boys

6403.91.30 …………… Footwear w/outer soles of rubber/plastics/composition leather & uppers of leather, covering the ankle, welt

6403.99.60 …………… Footwear w/outer soles of rubber/plastics/comp. leather & uppers of leather, n/cov. ankle, n/welt, for men, youths and boys, nesoi

6404.20.40 …………… Footwear w/outer soles of leather/comp. leath., n/o 50% by wt. rub./plast. or rub./plast./text. & 10%+ by wt. rub./plast., val. o/$2.50/pr

7113.11.50 …………… Silver articles of jewelry and parts thereof, nesoi, valued over $18per dozen pieces or parts

7113.19.29 …………… Gold necklaces and neck chains (o/than of rope or mixed links)

7113.19.50 …………… Precious metal (o/than silver) articles of jewelry and parts thereo, whether or not plated or clad with precious metal, nesoi

7116.20.50 …………… Precious stone articles, nesoi

7117.19.90 …………… Imitation jewelry (o/than toy jewelry & rope, curb, cable, chain,etc.), of base metal (wheth. or n/plated w/prec. metal), nesoi

The full list is here.

A UK government spokesperson told the BBC: “Like many countries around the world, we want to make sure tech firms pay their fair share of tax. Our digital services tax (DST) is reasonable, proportionate and non-discriminatory.

“It’s also temporary. We’re working positively with the US and other international partners to find a global solution to this problem and will remove the DST when that is in place.”