By European luxury stocks entered bear market territory Thursday as Trump’s expanded tariff list hit high-end consumer goods. The sector index plunged 4.3%, its worst day since pandemic lockdowns, with particular pain for:
- LVMH (Louis Vuitton): -5.2%
- Kering (Gucci): -6.1%
- Hermès: -4.7%
- Ferrari: -3.9%
The new 15% tariffs specifically target French champagne, Italian leather goods, and Swiss watches – products that derive nearly 40% of global sales from American consumers. “This is existential for some brands,” warned a Bernstein luxury analyst, noting margin compression could force price hikes.