Investors in Europe’s luxury companies must be feeling a strong sense of deja vu right now. Last year started brightly with expectations that demand for designer clothes and handbags would rebound after a two-year slump. But the recovery was stopped in its tracks by Donald Trump’s tariffs.

This year looks eerily similar, and the US president is once again the prime cause. Everything appeared golden for luxury at the start of 2026. A bunch of new creative directors were bringing out fresh products such as Chanel’s latest “It” bags. America’s big spenders were out in force as stock markets soared. There were green shoots in China.

© Bloomberg