President Trump has reiterated plans to implement a 25% tariff on imports from Canada and Mexico and a 10% tariff on imports from China, which will take effect on Saturday, February 1. Luxury brands are monitoring the potential impact of President Trump’s tariffs.
Vontobel portfolio manager Markus Hansen appears on Catalysts to elaborate on the likely impact of these tariffs on the luxury sector.
Hansen emphasizes that the tariff impact would largely be felt by mid-range brands. In contrast, high-end brands like Hermes and Richemont are resilient, with wealthy customers largely unaffected by price increases.
“Overall, the luxury universe is driven by the growth in high-wealth individuals,” he explains.
Additionally, explains that “tariffs aren’t new” to the luxury sector, as many luxury taxes already exist across the board. He emphasizes the resilience of these companies, noting that they “have been around for almost 150 plus years. They’ve seen a lot: world wars, recessions, ups and downs.”
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