A 140-year-old hat factory in Seville, Spain, has warned that a new U.S. tariff could end its four-decade tradition of supplying felt hats to Orthodox Jewish communities in New York and New Jersey.
10% Tariff Imposed in May
Fernandez y Roche Industrias Sombreras Españolas began paying a 10% import duty in May. General manager Abraham Mazuecos told Reuters the fee is “huge” for the artisanal producer, which lacks the margin to lower prices for long-standing U.S. customers.
Community Depends on Spanish Hats
Each year, the factory ships about 30,000 black felt hats to Orthodox Jews in the United States. That accounts for 60% of the roughly 100,000 hats the community buys worldwide. The rest go mainly to Israel.
Orthodox Jewish men wear these hats daily from age 13 and usually replace them every three years. Prices range from $120 to $380 per hat.
Trade Talks Extend to July 9
President Donald Trump, who has criticized the European Union over trade imbalances, threatened 50% tariffs on EU goods. He agreed on Sunday to extend trade negotiations with the 27-nation bloc until July 9.
Threat to Demand and Tradition
Mazuecos said low profit margins mean many U.S. buyers will likely cut orders. “We expect demand to fall,” he said. He warned that once imports become too expensive, consumers may turn to U.S. hat makers—though most domestic factories specialize in cowboy hats, not the traditional felt style.
Italian and Chinese Competitors
About one-fifth of the black felt hats worn by U.S. Orthodox Jews come from Spain. The rest are imported from Italy and China. Mazuecos fears that higher costs will drive buyers toward cheaper alternatives abroad or to the small number of U.S. hat makers.
