Trump’s tariff stops its hopes of revitalizing the luxury sector
Rapid escalation for Trade war By US President Donald Trump puts him The risk of recovering the luxurious world sector. With the last height of definitions Trump against China to 245 %The problems of the luxurious world sector can be far from ending. This is possible The luxury world sector grows between 1 % and 3 % annually between 2024 and 2027According to a recent reportDe McKinsey.
This compares to the luxury luxury commodity sector, including Skin articles, fashion, jewelry and clock, which will grow 5 % annually between 2019, 2023 and 9 % annually between 2021 and 2023McKinsey said.
According to the Bank of America, American consumers represent about 21 % of the world’s income From the luxurious sector in 2024, while Bain and Company China represents between 22 % and 24 % Of the luxurious global consumption in 2023. shoes, leather bags, materials and beauty products are some of the most luxurious products in both marketing.
In the United States, Gucci and Louis Vuitton were some major brands, while Chanel, Dior and Berber were also common. Chanel and Dior were two of the most luxurious brands as well in ChinaBrada, Louis Vuitton, Rolex and Hermes also recorded strong sales.
How can definitions affect the luxury world sector?
The luxury world sector has suffered a lot In recent months, since the global economy has slowed, China has made consumers Significantly reduce spending on high products.
Life cost crisis In different parts of the world, mainly due to a combination of Inflation and high interest ratesMore luxury purchases, because consumers have focused more on searching for deals and buying durable products.
During the last extension of the epidemic, when the demand was photographed, many luxury companies raised their prices, as well as their production. but, Innovation and creative strategies fail to maintain speedWhich eroded part of the uniqueness and attractiveness associated with these products.
On the other hand, small shops and brands arising from large luxury groups, such as Miu Miu de Prada, they suffer from a breakthrough. Recently, there has been a turn towards good and luxurious experiences at the expense of products.
Constants Customs tariffs and changes in the United States In recent days They have decreased billions of stock markets around the world and seriously affected consumer confidence. This can have a very solid impact on the luxury sector.
at the moment, China’s tariff compared to the United States by 125 %Much less than 245 % American. The United States had imposed a 20 % global tariff against the European Union, but It reduced it to 10 % for 90 days. This adds to a 25 % tariff on Steel and aluminum And cars for the European Union.
LululeMon Athletic has already suffered 20.7 % last month on the NASDAC, while Prada collection collapsed 23.4 % in the Hong Kong bag In the same time period. Keing also collapsed by 26.3 % last month on the Euronext Stock Exchange in Paris, and LVMH decreased by 19.9 % in the same period.
LVMHIt is a reference for the luxury sector in general, He saw how his total income decreased in the first quarter of 2025 by 2 %, up to 20.3 billion euros. The income of the fashion and leather commodities department decreased by 4 %, while they remained in the perfume branch and cosmetics. The wine and the figure of alcohol suffered a more difficult blow, with an 8 % decrease in income in the first quarter, while watches and jewelry advanced by 1 %.
The United States from the European Union also imports a series of luxury products, such as Alcohol, alcoholic beverages, cheese, chocolate, high furniture, furniture and carsAmong other things. Although the US global definitions against the European Union are still very low, the scope of imported goods It can cause several price increases that are transferred to consumersWho in turn can reduce these purchases.
The luxury sector also contains a somewhat transparent supply chain, which means that there can be several More hidden costs due to definitionsSince the production parts are transmitted between countries and continents.
Can the customs tariff enhance the demand for luxurious tradition?
Trump’s tariff against China They have prompted some Chinese manufacturers to use social media platforms such as Tiktok to urge us to buy consumers to buy luxury productsLike Perkin Bags and Lamron’s spices directly from their factories.
propagandaThese producers, who are often claiming to be the original teams of world luxury brands, offer this Tradition to the price part From the real brand, on the pretext that it was manufactured with the same workers, products and high -quality equipment.
but, These phrases are unfounded. Nevertheless, DHGATE, which is a Chinese wholesale market online, I reached the second place in the Apple App Store in the United States.
