Trump’s escalating trade war with China is significantly threatening the global luxury sector’s rebound. With raised tariffs against China reaching up to 245%, the worldwide luxury sector’s struggles could continue. McKinsey’s report predicts the global luxury sector’s expansion to range between 1% and 3% per year until 2027, which contrasts the personal luxury goods sector’s growth of 5% per year between 2019 and 2023 and 9% annually between 2021 and 2023. US consumers account for around 21% of global luxury sector revenues in 2024, compared to China’s 22-24% share. Tariffs could reduce consumer confidence, and smaller boutique brands, as well as breakout brands, are seeing increased demand. Currently, China’s tariffs are lower at 125%. LVMH and other luxury companies have already seen significant drops in stock value. Tariffs may also boost demand for luxury knock-offs, with some Chinese manufacturers advertising on social media platforms.
Source: https://www.euronews.com/business/2025/04/18/how-trumps-tariffs-are-dampening-hopes-of-a-luxury-sector-revival
The Impact of Trump’s Tariffs on the Luxury Industry’s Revitalization Efforts
