A study says the global luxury goods market will shrink in 2025. Trump tariffs could make it worse

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While the study did not address the possible impact of tariffs, D’Arpizio said the impact on European luxury producers would depend on how the tariffs are implemented on the category, if at all. She noted that a dearth of American luxury substitutes may lead to an exemption. Sales of luxury goods are forecast to drop by 2% to 363 billion euros next year, from an expected 369 billion euros in 2024, due to steep price increases imposed by brands and global turmoil, Bain said.

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