European luxury stocks moved sharply lower on Monday after U.S. President Donald Trump raised the prospect of new import tariffs on European goods, reviving worries about renewed transatlantic trade tensions.
The luxury sector underperformed the broader market as investors grew cautious that higher U.S. duties could weigh on demand in one of the industry’s most important end markets. With luxury highly exposed to discretionary spending and global trade flows, the sector is particularly sensitive to policy uncertainty.
Shares in LVMH (EU:MC), the world’s largest luxury group, fell around 4%, while Hermès (EU:RMS) dropped roughly 3.1%. Kering slid close to 2.8% amid renewed concerns over export growth, as of 10:20 GMT. Eyewear specialist EssilorLuxottica (EU:EL) declined by about 1%.
In Switzerland, Richemont (BIT:1CFR) and Swatch Group (LSE:0QM4) traded between 2% and 3.7% lower. Italian luxury names were also under pressure, with Moncler (BIT:MONC) and Brunello Cucinelli (BIT:BC) down between 2.1% and 2.5%.
Elsewhere, Ferrari (BIT:RACE) slipped about 2.3%, while jewellery maker Pandora (TG:3P7) fell roughly 2.6%. In London, British luxury brand Burberry (LSE:BBRY) was down around 2.6%.
Trump said over the weekend that he was considering new tariffs on European imports, reigniting fears of a trade dispute at a time when the luxury industry is already facing uneven demand in China and a slowing global economy.
Analysts warned that tariff uncertainty could cloud earnings visibility for luxury groups, many of which derive a significant share of revenues from U.S. consumers and cross-border sales.
Adding to the pressure, Goldman Sachs downgraded LVMH to “equal-weight” from “overweight”, arguing that the stock’s valuation leaves limited scope for further upside despite improving brand momentum. The bank said stronger performance at Louis Vuitton and Dior should support better-than-expected fourth-quarter sales, but cautioned that currency movements, potential tariff headwinds and ongoing weakness in the wines and spirits division present downside risks to 2026 earnings expectations.
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