Overview

• The EU-U.S. trade agreement imposes a 15% tariff on European luxury exports to the United States, defying industry hopes for a zero-for-zero deal.
• UBS analysts estimate brands must raise U.S. prices by about 2% to avoid a roughly 3% hit to earnings before interest and tax, risking further consumer pushback.
• Bain & Co. forecasts a 2–5% decline in global luxury goods sales this year, marking the largest contraction since the 2008 financial crisis outside of the pandemic.
• LVMH’s Bernard Arnault has announced plans for a new Louis Vuitton factory in Texas following intense lobbying, though competitors warn onshoring carries high costs and skill challenges.
• With Chinese demand faltering, luxury groups are also pursuing digital expansion, selective leadership changes and targeted discounts to shore up market share.