Global sales of personal luxury goods are forecast to shrink in 2025 for the first time since the Great Recession, according to a new Bain consultancy study. The outlook could worsen if the sector is hit by tariffs promised by Donald Trump. "This could be a nightmare if implemented,'' said Claudia D'Arpizio, co-author of the study for Italy's Altagamma association of luxury producers.
Trump has pledged tariffs of up to 20% on imports, saying it would create factory jobs, shrink the federal deficit and lower food prices. 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.
Any negative impact could also be offset by moving production to the United States, or by higher sales to U.S. tourists in Europe.
Sales of luxury goods are forecast to drop by 2% to $385 billion next year due to steep price increases imposed by brands and global turmoil, Bain said. McDONALD'S: McDonald's is investing $100 million to bring customers back to stores after an outbreak of E. coli food poisoning tied to onions on the fast-food giant's Quarter Pounder hamburgers.
The investments include $65 million that will go directly to the hardest-hit franchises. GM: General Motors said Friday it's laying off about 1,000 workers worldwide, shedding costs as it tries to compete in a crowded g.
