In the United States, luxury consumption and the broader retail business are in line for yet another shakeup, as the current White House administration plans to once again increase tariffs on Chinese imports.
While Europe is the main player in the manufacturing of luxury goods, the imposed tariffs on imports from China are so harsh they are likely to affect much of the retail industry. It is highly likely that these tariffs will force a rise in prices for the American consumer, according to the United States Fashion Association.
“The impact of the higher tariffs shouldn’t impact pure luxury goods as few are manufactured in China,” said Marie Driscoll, managing director of luxury and fashion at Coresight Research, a global research and advisory firm specialising in retail and technology. “The tariffs potentially impact consumer sentiment, in terms of the potential global economic impact.”
The tariffs announced by the Trump administration, on all imports from China, will reach as high as 25%. Since these goods are already highly taxed, it is likely that this will greatly impact the price of these goods. There is belief that these tariffs will see a surge in small business creation, but others believe this will just shift U.S. imports to other countries such as Vietnam.
