FT News Briefing How tariffs are affecting luxury goods
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Apr 21, 2025 
Lauren Indvik, the FT's fashion editor, delves into the rocky landscape of the luxury goods industry amid current economic turbulence. She highlights how Trump’s trade policies and tariffs have disrupted growth, making 2025 ambitions look bleak. The conversation reveals divergent financial fates among brands like LVMH and Kering, and she discusses shifts in consumer behavior, particularly in China. Additionally, the podcast touches on brands reevaluating their supply chains, moving away from China to adapt to new challenges.
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Post-Pandemic Luxury Surge
- After the pandemic, many saved money and indulged in luxury goods, unexpectedly boosting sales despite store closures.
- The luxury market rebounded strongly with customers renewing their wardrobes when stores reopened.
Luxury Growth Driven by Price Hikes
- Luxury growth recently relied heavily on price increases rather than more sales volume.
- With prices doubling for some items, many customers now question the value of such expensive goods.
Economic Confidence Affects Luxury Sales
- Luxury buyers’ confidence correlates closely with stock market performance and economic conditions.
- Tariffs create uncertainty, causing some consumers to delay luxury purchases amid market volatility.