LVMH Shares Plunge 4.8% on Goldman’s Warning of EU GDP Drag from U.S. Tariffs
Trump's threat of 10% tariffs on imports from eight European countries from February 1, 2026, rising to 25% by June 1, could cut euro-area GDP by 0.1–0.2% per Goldman Sachs. LVMH shares tumbled 4.78% as investors braced for softer U.S. luxury demand.
1. LVMUY Shares Plunge on U.S. Tariff Threats
LVMUY shares fell 4.78% on Monday following President Trump’s announcement of potential tariffs on European exports tied to Greenland negotiations. The decline outpaced the broader European luxury sector, where peers saw average losses of around 3.5%. According to data compiled by Goldman Sachs, U.S. duties of 10% on French luxury goods could shave 0.1%–0.2% off real GDP in affected nations, exerting downward pressure on export volumes. LVMUY, which derives approximately 35% of revenue from U.S. sales, faces an estimated €1.2 billion reduction in annual top-line growth if the 10% tariff is implemented, rising to a potential €3 billion hit under a full 25% tariff by June 1. Investor sentiment was further dampened by commentary from JP Morgan analysts, who cut earnings per share forecasts by 5% for fiscal 2026, citing heightened trade risk and possible consumer retrenchment in the U.S. luxury market.