Hermès and Dior goods will be safe from China's trade retaliation

BY Reuters2 minute read European luxury shares have slid on investor concerns that Hermès handbags and Dior slingbacks may be Beijing's next targets for retaliation, following the EU's decision to slap tariffs on China EVs, but analysts say such a move is unlikely. "It's a question of how Beijing will respond to the EV tariffs. Is there going to be an escalation? I think yes.

Is it going to go after luxury goods? I don't think so," said Patrice Nordey, CEO of Shanghai-based innovation consultancy Trajectry. So far, moves by China in the ongoing tit-for-tat trade spat with the EU have targeted brandy, pork and dairy, all of which are major industries for France, which lobbied for tariffs on Chinese-made EVs imported into the EU. Shares of LVMH, which also markets high-end Hennessy cognac, Hermès, Kering, Ferragamo, and Burberry dropped 2%-6% on Tuesday after Beijing said it would impose temporary anti-dumping measures on imports of brandy.

Subscribe to the Compass Newsletter. Fast Company's trending stories delivered to you daily Privacy Policy | Fast Company Newsletters Jacques Roizen, managing director of China consulting at Digital Luxury Group,..

. Reuters.