The United States Will Levy Tariffs On European Goods At The End Of This Month.

Some luxury goods companies in Europe may pay more tariffs to the United States, which includes billions of dollars worth of luxury goods such as whisky, wine, champagne, handbags and men's clothing exported from the European Union to the United States. The performance of many European luxury companies such as LVMH group and Hermes international has been affected in the capital market.

According to Bloomberg news, Reuters and many other foreign media reports this month, the World Trade Organization (WTO) has opened a green light on the recent request from the United States to impose tariffs on a range of European goods. The US government has taken this opportunity to report the EU's assistance allowance to the airbus company (Airbus).

　　 European Union sources said they expect the world trade organization to release a report by the end of the month, which will allow the United States to impose tariffs on a range of commodities worth 5 billion to 7 billion dollars, while President Trump has threatened to impose tariffs on 11 billion dollars in European Union products.

The Washington government's final tariff increases will be introduced at the end of this month. The US government may impose a 100% tariff on the total export volume of US $25 billion. Although the aircraft and components exported from the EU to the United States will be hit most hard, it may also be associated with a range of luxury goods from the EU.

　　 The LVMH group will be particularly affected by US tariffs. The United States is a big exporter of luxury goods in France. Last year, the US market contributed 1/4 of LVMH sales. According to Bloomberg news, American consumers bought $12 billion 400 million from LVMH group in 2018.

LVMH group's "Moet and Chandon" and "Tang peron champagne king" two luxury wine production lines, as well as Givenchy, Kenzon, LV and other bags leather goods brand to a large extent depends on the U.S. market. In response to the booming demand for luxury goods in the US market, LV has opened three leather workshop in California and Texas.

Jean-Jacques Guiony, chief financial officer of LVMH group, said in a telephone conference on July that the group was "very sensitive to tariffs and trade barriers".

　　 "The whole thing started because of the airplane and had nothing to do with handbags or men's clothing." Karen Giberson, chairman and chief executive officer of the bag accessories industry association, told the women's Wear Daily that "in some tariff issues, I think fashion is just a victim of numbers. In my opinion, they try to reach a certain threshold, or choose products that can express their attitudes better."

Reuters quoted two people as saying that if the current round of tariff increases is introduced, it may lead to European retaliation.