EU Luxury Brands Face WTO-Approved U.S. Tariffs

EU Luxury Brands Face WTO-Approved U.S. Tariffs

Some of Europe’s top luxury brands are targeted in President Donald Trump’s latest tariff salvo, which could affect billions of dollars in exports of American-bound handbags, men’s suits, whiskeys, wine, and Champagne. European Union sources say they expect a panel of three World Trade Organization arbiters to publicly circulate a report by month’s end that will allow new U.S. duties on a range of goods worth $5 billion to $7 billion per year—far less than the $11 billion Trump has threatened. The panel, as expected, on Friday said the U.S. can legally impose tariffs on an array of European exports in retaliation for Europe violating WTO rules barring government subsidies that in this case involve the airplane manufacturer Airbus SE. Shares of French luxury conglomerate LVMH fell as much as 4.4% on Monday in Paris, with Airbus dropping as much as 5.4%. Continuing political turmoil in Hong Kong and a slowing Chinese economy have also weighed on European fashion and drinks companies. Washington’s response is expected within days after the WTO’s green light for retaliation. The U.S. has identified possible targets—with tariffs potentially as high as 100%—on a list of goods with a total export value of $25 billion […]

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