Trump’s trade war endangering US supply of Orthodox Jewish hats from 140-year old factory

A Spanish hatmaker has said higher EU tariffs would be "dramatic" for their business

A Spanish hatmaker has warned that a 40-year tradition of supplying felt hats to Orthodox Jews in the U.S. is at risk due to President Donald Trump's trade war.

The community, primarily located in New York and New Jersey, purchases approximately 30,000 hats each year from Fernandez y Roche Industrias Sombreras Españolas, a 140-year-old factory in Seville, southern Spain. In May, they began paying a 10% import tariff for the first time, according to the factory's Managing Director, Abraham Mazuecos, who spoke with Reuters.

Trump has frequently criticised the EU for what he claims are unfair trade imbalances with the U.S. He has also suggested an additional 50% tariff on EU goods. However, on Sunday, he agreed to extend the deadline for negotiations between Washington and the 27-nation bloc until July 9.

Orthodox Jewish hats are pictured at 140-year-old Fernandez y Roche Industrias Sombrereras Espanolas factory in Salteras, near Seville (Reuters)

Mazuecos stated that higher tariffs would be "dramatic" for the handmade hat factory, as it cannot afford to lower prices for its long-standing U.S. clients to compensate for the new fee. "Our margins are tight, so we expect a decline in demand," Mazuecos told Reuters, highlighting the potential impact of the trade war on their business.

The factory supplies 60% of the 100,000 hats bought each year by Orthodox Jews, with half going to the U.S. and the other half to Israel. Spanish hats account for a fifth of all black felt hats purchased by the Orthodox Jewish community in the U.S., which also imports from Italy and China, Mazuecos said.

A person works at 140-year-old Fernandez y Roche Industrias Sombrereras Espanolas factory, which produces Orthodox Jewish hats, in Salteras, near Seville (Reuters)

The black felt hat, worn daily by Orthodox Jewish men from the age of 13, is typically replaced every three years at a cost of between $120 and $380, he added.

Mazuecos said that U.S. customers could gradually buy fewer hats from abroad and seek U.S. manufacturers that can produce them at lower prices."There are hat factories in the United States, but they are highly specialised in cowboy hats," he said.