The US has imposed tariffs on imports from Europe. These include handbags, men’s suits, whiskeys and wine. Though the most valuable goods on the US list are exports of European aircraft and parts, the tariffs could also hit products made by Europe’s most recognized high-end brands. LVMH is particularly vulnerable to the proposed US levies, which target two of its primary product lines—wine and spirits like Dom Perignon, Moet & Chandon, and Hennessy—and leather goods under labels such as Donna Karan, Givenchy, Kenzo, and Louis Vuitton.

The new tariffs will increase costs that will undoubtedly be passed on to US consumers. Many US exporters oppose the proposed tariffs, which they say could boomerang and jeopardize thousands of American jobs. US whiskey producers have already become collateral damage from US steel and aluminum tariffs—which spurred the EU to retaliate with a 25 per cent tariff on US bourbon and whiskey.

The US market for luxury goods is among the top destinations for European companies like LVMH where the US made up almost a quarter of its total global sales last year. The US is currently evaluating whether to penalize French wine and other goods in response to France’s tax on Amazon, Facebook and Google.