Luxury Brands Prepare for Tariffs as Wealthy Consumers Hold Back



The luxury market in 2025 faces unprecedented challenges due to the Trump administration's new tariff policies. Luxury brands, already struggling in a tough market, now encounter additional hurdles that threaten to deepen their woes.

Luxury automobiles, which saw a 5% decline to $641 billion last year, are preparing for further turbulence. Similarly, the personal luxury goods sector, which dropped 2% to $402 billion in 2024, faces an even steeper decline if the proposed tariffs take effect.

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