U.S. President Trump’s trade war is impacting the global luxury sector’s rebound.
McKinsey predicts the global luxury sector will grow 1-3% annually from 2024-2027.
US consumers contribute 21% of global luxury sector revenues, while China accounts for 22-24%.
Brands like Shein and Temu are popular in both the US and China, both expect to see price increases.
Tariffs and trade wars have led to stock market drops and decreased consumer confidence, affecting luxury brands like Lululemon, Prada, Kering, and LVMH.
Welp! 😩 SHEIN has announced plans to adjust its prices starting April 25, 2025, citing increased operating costs due to recent changes in global trade rules and tariffs. (✍🏾: #TSRStaffLG) pic.twitter.com/0WxZ1EUds1
— TheShadeRoom (@TheShadeRoom) April 16, 2025