Britain’s Loss Is Europe’s Gain as Brands Go Offshore Ahead of Brexit

LONDON — Call it the continental hustle. Hoping for the best and bracing for the worst, some British fashion and beauty businesses have been war-gaming a hard Brexit — which could come as early as April 12 — opening factories, warehouses, logistics and distribution centers on the European continent in a bid to dodge potentially onerous WTO tariffs on imports from the European Union. Although the British government has promised to soften the blow of a potential no-deal Brexit by cutting import tariffs on 87 percent of the goods, that sweetener will only be temporary, and Britain will eventually have to hammer out a new trade agreement with the EU. At some point in the whole arduous process Britain will likely default to WTO tariffs, which are up to 12 percent for clothing, and up to 8 percent for raw materials and packaging in beauty. Spooked by the uncertainty and looking to dodge those tariffs and protect their margins, British-based brands that source, manufacture or make their samples in Europe — and move them back and forth across the English Channel — have pivoted, and set up new businesses on the continent. English designer Katharine Hamnett, in one of her slogan T-shirts, believes Britain will

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