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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Should l Buy ?
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.
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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.
