The global luxury goods market is forecast to shrink in 2025. Trump's tariffs could make it worse
Global sales of personal luxury goods are forecast to shrink next year for the first time since the Great Recession in 2008 and the COVID-19 pandemic
MILAN (AP) — Global sales of personal luxury goods are forecast to shrink in 2025 for the first time since the Great Recession, according to a Bain consultancy study released Wednesday. The outlook could worsen if the sector is hit by tariffs promised by Donald Trump.
“This could be a nightmare if implemented,’’ Claudia D’Arpizio, co-author of the study for Italy’s Altagamma association of luxury producers, told The Associated Press. “European brands could end up being super expensive in an already expensive environment.’'
Trump has pledged tariffs of up to 20% on imports, saying it would create factory jobs, shrink the federal deficit and lower food prices.
While the study did not address the possible impact of tariffs, D’Arpizio said the impact on European luxury producers would depend on how the tariffs are implemented on the category, if at all. She noted that a dearth of American luxury substitutes may lead to an exemption.
