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U.S. tariffs on European luxury goods are slashing sales and profits, with major brands like Gucci and Porsche hit hard.
U.S. tariffs on European exports are severely affecting luxury and high-end manufacturing, with LVMH and Kering reporting revenue declines, Gucci sales down 22%, and Porsche’s U.S. profits dropping nearly 99%.
A 39% tariff on Swiss watches caused a 56% export drop.
Companies face pressure to raise prices or absorb costs, risking consumer demand and brand loyalty.
The U.S. remains a key market, accounting for over 23% of global luxury spending, but demand is weakening.
Some firms explored shifting production to the U.S., but low productivity and labor shortages limit success.
Porsche has ruled out U.S. manufacturing, and industry leaders warn relocating production could harm the cultural authenticity of European luxury brands.
Los aranceles estadounidenses a los productos de lujo europeos están reduciendo las ventas y las ganancias, con grandes marcas como Gucci y Porsche golpeadas duramente.