Tariffs May Hammer Luxury Goods Giants

Luxury goods companies may soon feel the squeeze from tariffs, Yahoo Finance’s Brian Sozzi reported.

Ferragamo has already increased prices on some handbags and ballet flats in response to the tariffs. I Photo: Aventura Mall

“The new import duties are worse than expected and pose a significant headwind to the sector,” JPMorgan analyst Chiara Battistini wrote in a note to clients. She pointed out that many of the world’s top luxury brands—including LVMH, Kering, and Burberry—export their products from Europe, which is now facing a 20% tariff.

Battistini also raised concerns about the sector’s pricing power, warning that even high-income consumers might start cutting back if price hikes spread to more affordable luxury.

JPMorgan's research found that Ferragamo has already increased prices on some handbags and ballet flats in response to the tariffs.