LVMH Shares Fall 4.78% After Goldman Warns 10–25% U.S. Tariffs Could Cut 0.5% GDP
LVMH shares plunged 4.78% after Goldman Sachs warned U.S. tariffs of 10%, rising to 25% by June, could shave up to 0.5% off euro area GDP. The threat drove the EURO STOXX 50 down 1.4% and STOXX Europe 600 by 1.2%, hitting luxury exporters.
1. LVMH Faces Investor Pressure From Potential EU-US Tariffs
Shares of LVMH (LVMUY) were among the worst performers in Europe following Goldman Sachs’ warning that proposed U.S. tariffs on eight European countries could shave 0.1%–0.2% off GDP in affected markets. On the day markets reacted to President Trump’s threat of a 10% levy from February 1, LVMH stock fell by just under 5%, marking one of the steepest declines in global luxury names. Analysts note that Germany—LVMH’s second-largest market after the U.S.—would bear the brunt of any trade barriers, with tariffs on exports equivalent to as much as 3%–3.5% of German GDP under broad implementation. The drag on European growth is expected to dent consumer confidence and dampen demand for high-end products, putting further pressure on LVMH’s revenue projections for 2026. Investors will closely monitor any escalation to a 25% tariff, which Goldman Sachs warns could deepen the GDP hit to 0.25%–0.5%, as such an outcome would threaten the luxury group’s pricing power and margins in key European markets.