Tariffs

European Luxury Brands Turn to ‘Smart’ Price Hikes Amid Tariff Strain

LVMH is also shifting production to the United States, and some analysts say other brands may follow suit.
European Luxury Brands Turn to ‘Smart’ Price Hikes Amid Tariff Strain
The main entrance of the Chanel Ginza Building in Tokyo's Ginza shopping district, in this file photo. Koichi Kamoshida/Getty Images
Panos Mourdoukoutas
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Following the EU–U.S. trade agreement announced on July 27, European luxury brands have avoided the steep tariffs once threatened by President Donald Trump, but still face elevated rates. With sales slumping in recent years, some brands are recommending price increases “in a smart way.”

Under the agreement, most goods imported into the United States from the EU, including automobiles, will face a 15 percent tariff, half of the 30 percent rate that Trump had suggested the United States would impose in a July 12 letter to European Commission President Ursula von der Leyen.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”