Shares in European luxury companies tank as Trump recommends 50% tariff on EU goods

News Snapshot:

European luxury shares tanked on Friday as U.S. President Donald Trump said he is recommending a straight 50 per cent tariff on goods from the European Union starting on June 1. Europe’s luxury industry, producing handbags, shoes, fashion items and champagne among other prized goods, is highly exposed to the U.S. market, which was seen as the sector’s best hope for growth this year as Chinese demand lags. Shares in LVMH and Hermes, France’s largest listed companies by market capitalization, fell by around 3 per cent and 4 per cent respectively after Trump’s announcement, in line with sector peers including...