European Luxury Stocks Slump on Trump's Tariff Threat

By Aimee Look

Luxury stocks slumped after President Trump threatened 10% tariffs on various European countries in an attempt to pressure Denmark to sell Greenland to the U.S.

In European morning trade, sector bellwether LVMH Moet Hennessy Louis Vuitton was down 4.2% to 583.4 euros. Cartier-owner Richemont fell around 3.3% and Kering shares fell 3% to 280.15 euros. Almost all other major European luxury makers dropped as well.

LVMH stock was also downgraded by Morgan Stanley to equalweight from overweight. "The main reason for our increased cautiousness relates to FX and tariffs impact," the analysts wrote. "Which LVMH will be only partially able to offset via price increases given the necessity to not price out the middle income consumer."

Both Kering and LVMH have a 23% revenue exposure for its exports to the U.S., according to another note from Morgan Stanley.

Over the weekend, Trump unveiled a new slate of tariff threats on goods from Denmark, France, Germany, the U.K., Norway, Sweden, the Netherlands and Finland. Trump said they would face 10% tariffs beginning on Feb. 1, which would increase to 25% on June 1.

The president didn't specify whether this would be in addition to current tariffs.

Write to Aimee Look at aimee.look@wsj.com

(END) Dow Jones Newswires

January 19, 2026 05:32 ET (10:32 GMT)