LONDON — U.S. President Donald Trump’s last-minute decision to roll back tariffs temporarily for Canada and Mexico sent European luxury shares down in the double digits in late-afternoon trading on Friday.
The FTSE 100 in London was flatlining at 8,682.82 at 4 p.m. CET and is on track to record its worst week of the year due to Trump’s indecision, while the CAC 40 was down 1.46 percent, and Milan’s MIB 40 index was broadly flat.
Of Europe’s luxury brands, Salvatore Ferragamo was the hardest hit, falling 17.8 percent to 6.18 euros, followed by Burberry, which was down 6.5 percent to 10.01 pounds. Ferragamo‘s share decline could also be a result of the company’s struggles and the exit of chief executive officer Marco Gobbetti.
Richemont fell 4.7 percent to $166.15, while Kering was down 4.4 percent to 247.70 euros. LVMH Moët Hennessy Louis Vuitton fared slightly better than its peers, ticking down 2.7 percent to 635.30 euros.
Burberry fall 2025
Giovanni Giannoni/WWD
All companies that export goods to the U.S. — and not just Canada and Mexico — have been rocked by the lack of clarity around the new tariffs. The next key date for Trump’s tariffs plan is April 2, when they are meant to be extended to other countries, including the European Union. Those tariffs could potentially sweep up luxury goods in some form.
It means they are unable to plan for the long-term, and potentially face hours at the border dealing with red tape due to the last-minute changes.
Over the past few days Trump has backtracked on tariffs with the new closest neighbors in the U.S., Canada and Mexico.
On Thursday night, he gave a one-month reprieve to Mexico, lifting the previously announced 25 percent import tax. Earlier in the week, he also changed his mind about car imports from both countries, and froze those taxes for one month.
The moves are also impacting the dollar, which has fallen in value against the pound and the euro.
