The global luxury goods market is forecast to shrink in 2025. Trump’s tariffs could make it worse

Associated Press

MILAN (AP) — Global sales of personal luxury goods are forecast to shrink next year for the first time since the Great Recession in 2008 and the COVID-19 pandemic. That’s according to a new study by the Bain consultancy. It forecasts a 2% slowdown next year due to global turmoil and steep price hikes by brands. And the study’s co-author says the outlook could worsen if the sector is hit by tariffs promised by Donald Trump. Bain partner Claudia D’Aripizio says the imposition of tariffs “could be a nightmare,” making European brands “super expensive in an already expensive environment.”