Luxury firms face tariff hit as recession fears mount
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 10 2025
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Source: CNBC
Impact of U.S. Tariffs on European Luxury Brands: European luxury brands like LVMH and Kering are facing potential challenges due to new U.S. tariffs, which could hinder their recovery from a post-Covid slowdown, despite a temporary pause in tariff rates announced by President Trump.
Concerns Over Economic Downturn: Analysts warn that a broader global recession, with a 60% likelihood according to JPMorgan, could negatively affect luxury demand, leading to increased prices that even affluent consumers may struggle to absorb, thereby postponing any recovery in the sector.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
