Australian-born luxury platform Cettire has tried to alleviate investor panic by issuing a statement to the ASX following changes to US tariffs on overseas goods.
This comes after United States President Donald Trump imposed tariffs on imports from Canada, Mexico and China.
According to an official statement by the White House, the “extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA).”
As a result, the President is implementing a 25 per cent additional tariff on imports from Canada and Mexico and an additional 10 per cent tariff on imports from China. Energy resources from Canada will have a lower 10 per cent tariff.
In response, Cettire confirmed it does not have any agreements in place with suppliers in the affected countries.
In FY24, Cettire claimed that approximately 7.5 per cent of its gross sales sourced from the US were related to items manufactured in the jurisdictions impacted by the new tariffs. This reportedly represented approximately 4 per cent of Cettire’s total gross sales.
“Cettire began identifying strategies to prepare for and mitigate potential changes to the US tariff regime throughout calendar year 2024 and continues to closely monitor the situation,” the company added.
Following the ASX update on Monday morning (February 3), Cettire's share price tumbled by 19 per cent to a new recent low of $1.18, putting its total valuation around $526 million.
It is unclear exactly where the luxury platform's suppliers are located, but as it sells high-end luxury products, it is believed much of its supplier base is in France and Italy.
For the FY24 period, Cettire’s total sales revenue was $742.3 million, up 78 per cent on last year. The business reported it had 692,000 active customers during the financial year.
The latest announcement also follows the luxury platform’s official entry into mainland China through a dedicated website.