From Quiver Quantitative: 2025-05-24 01:42:00

European luxury stocks took a hit after President Trump announced a 50% tariff on EU imports, impacting heavyweights like LVMH and Hermès. Analysts fear for the industry’s growth potential in 2025, already strained by weak Chinese demand. Brands face challenges shifting production to the U.S., with limited options. While some firms may pass on tariff costs with price hikes, excessive increases could turn off consumers already feeling the pinch. France and Italy, luxury manufacturing hubs, could suffer if tariffs persist, with hundreds of thousands of jobs at risk. Trump’s move could have far-reaching effects on Europe’s iconic luxury sectors.



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