US EditionEurope’s luxury players face a path-defining twist with Trump’s tariffs. But only a handful of them will suffer the worst impact
- President Donald Trump announced a 20% tariff on imports from the European Union, which is expected to impact luxury stocks significantly, especially for Watches of Switzerland, which saw a decline of over 13%.
- The European luxury sector is valued at approximately €260 billion and accounts for about 70% of the global luxury goods market, facing challenges from these tariffs that heavily affect its sales in the U.S.
- Trump claims that these tariffs will lead to greater investment in U.S. Manufacturing; however, many European luxury brands rely on local craftsmanship and may not relocate production.
- The economic impact of the tariffs, aimed at reducing trade deficits, is predicted to be marginal, causing significant damage to various sectors without resulting in promised tax revenues.
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As tariffs hit luxury imports, expect the resale market — for Ferraris, watches, wine and more
As tariffs hit luxury imports with an extra tax, the resale market -- for everything from Ferraris to watches to wine -- is expected to boom as collectors realize they can get a premium for their used goods now and flood the market with inventory.
How Much Will Hermès Birkins, Chanel Flap Bags and Fendi Baguettes Cost After Trump’s Tariffs Hit European Imports?
"Purchasers of luxury goods are probably not very price-sensitive, so sellers will be able to pass the tariff on to buyers in the form of higher prices," Randall Holcombe, professor of economics at Florida State University, told WWD.
European luxury stocks fall out of fashion after tariffs, with luxury watch retailer hit particularly hard
As the President Trump’s 20% blanket tariff on all imports from the European Union into the US wreaks havoc on the stock market, one industry that’s fast becoming passé for investors is Europe’s luxury...
Europe’s luxury players face a path-defining twist with Trump’s tariffs. But only a handful of them will suffer the worst impact
President Donald Trump’s long-awaited (read: much-dreaded) tariffs have finally been announced, unlocking a new degree of uncertainty in global business. Europe, subject to a 20% blanket tariff, will now have to brace for the aftermath of these measures—as will its most alluring sector: luxury. Luxury has an outsized presence in Europe, with its brands accounting for at least 70% of the global luxury goods market and its exports worth €260 billi…
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